Iraqi coalition rejects Islamic Theocracy
Iraq adopted the requirement of supermajority approval for a new constitution. This has forced the Shiites to join in coalition with the Kurds. The Kurds have had semi-autonomous rule during the last 10 years with the help of the no-fly zone enforced by America. They are concerned about any loss of freedom.
There is also anecdotal evidence that the Shiites have heard from Persian visitors to the Iraqi holy sites that the theocracy in Iran has lost the respect of the younger generation. Perhaps this will encourage the Shiites to a more modest position with respect to introducing religion into government via Islamic law. This is a small step down a long road but it is still positive.