Virgin operated a number of humanitarian flights into Kuwait at the end of the last Gulf war; why should the proposal to do the same kind of thing now be so controversial? They will have to be operated by someone, and I believe that the humanitarian flights will be at no cost to Iraq or the charities and humanitarian organisations who will use them.
As for ongoing commercial operations, surely any existing UK-Iraq route licences will be null and void and new ones will need negotiating? With the scale of the reconstruction effort likely to be huge, there will be room for many airlines from many countries to operate into Baghdad, and other Iraqi airports. Virgin is simply the first of the high-profile carriers to announce its intentions. There will be many others.