Another sign of incompetence. Jeebus, the morons in the IGC can't even get the smallest things right. Of all the colossal blunders that have been made (disbanding the Iraqi army, having no post-war plan, privatizing the reconstruction rather than using Iraqi workers, putting Chalabi anywhere near power), you'd think that they could maybe get something right such as designing a new Iraqi flag. Nope. Here's a picture of the proposed flag:

Now, what's so wrong with this? It sure looks purty, don't it? Well, for one, the colors are all wrong. Those are the colors of the Israeli and U.N. flags. Bad move. Secondly, the folks at the IGC aren't so popular these days, and they didn't really seek any outside input from, you know, other Iraqis.
Rightwingers will likely say, "It's just a flag, just be glad we gave you freedom." But then tell those wingnuts that you want to burn the American flag because "It's just a flag, just be glad you have freedom."
I mean, if you had to choose a bone to throw to the Iraqis who are already quite peeved, this would certainly qualify. But I guess they at least didn't make the new flag red, white, and blue.
Tom Toles has a cartoon on the subject.