This may be one of those very rare instances of where the Government of Bahrain and Gulf Air were able to get traffic rights and set up operations before the regional competition
Surely you don't think that the regional competition could not have also got these traffic rights if they had wanted to? I am absolutely certain that the Iraqi government would roll out the red carpet for anybody at all who wants to go there.
Remember, Iraq is still considered a war zone by the majority of responsible governments in the world. Perhaps the regional competition is being careful not to rely on information from private US 'security contractors' like Sabre.
No, I don't think this some kind of coup or one up on the competition, this is a very serious issue and the decision should not be taken lightly. Yes, it is possible that nothing will happen, on the other hand...
By the way, does your Life Insurance and your mortagage insurance cover allow you to go to a war-zone, mine does not.
Cheers and good luck