It is in our best interest to have the middle east rid of regions that can serve as terrorist training grounds, for example. Afghanistan was clearly one, but Iraq was, too. Examples include Salman Pak not too far from Baghdad and the training camp belong to Al Ansar Islam in Northern Iraq. Salman Pak was a government operation, the Al Ansar Islam was an 'independent' outfit that operated with protection for Hussein.
And Hussein was in a state of war with the US just as Al Qaeda had been. There has been a sad habit ever since WW2 of not calling a war a war. Not doing so raises all sorts of complications. Well, Iraq under Hussein had been in a state of war with the US- we made the mistake of thinking of it as some sort of police action. Though I would have preferred some formal declarations even under President Bush, I am glad that he understood what the true state of affairs are. So in this respect, what is 'good for the Iraqis' is really irrelevant. They were in a state of war with us, and now they've paid the price.
However, it is not in our best interest to let Iraq or that region become unstable, if only because we don't know where Saddam's WMD are and because of the obvious fact that terrorists would take it over again. Therefore, it is good and right of us to rebuild Iraq, just as we rebuilt Japan and Germany and Italy, and for the same reasons.