A delightfully inept posting. Let's break it down.
Iraq has had very minimal US presence for at least six months now. The Iraqi government's ability to exercise and control its monoply on the use of violence far exceeds that of a number of countries in the Western Hemisphere. Mexico comes to mind.
People are getting fed, housed, and clothed. Famine and disease are controlled or nonexistent.
No enemies foreign or domestic are able to pose a realistic challenge to governmental power.
Yes, the Iraqi government is functional. I daresay it's more functional than that of most of Central America.
On the topic of the Iraqis being pushed along lines we regard as good, step back for a moment and think of why this thread exists. The government of Iraq and the government of the United States are unable to come to mutually acceptable terms regarding the basing of US troops in Iraq. If the Iraqi government were wholly or even mostly a US creation, would such a thing even be possible? Would such negotiations even be necessary, much less break down?