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The reason is the Israel-Palastinian conflict/problem.
It is known to people in that region that Saddam offers a pension to the families of suicide bombers. He also rebuilds the family home after Israel comes in and destroys it.
It is this continued infusion of money that continues the suicide attacks and prevents any cooling off period that would allow cooler heads to prevail. No peace plan has a chance unless morons with exlosives strapped to themselves, stop blowing up busses in Israel. That will not end while money (from Saddam, actually from the US via the oil for food program) continues to flow into that region.
Bush is attempting to acheive a wider more far reaching goal. However, i feel he is blinded by wishful thinking.