“Death Squad” is a media term, and in this case bares little resemblance to the notorious death squads of Latin America. This would be an operation where soldiers kill terrorists who call themselves “soldiers”. It is far better than dropping 500 pound bombs in residential neighborhoods.
I think you are being optimistic here.
You will have to find the terrorists, and their safe houses. To do so, you will have to interrogate the Lori Berensons of Iraq, and do so successfully. You will make mistakes. To be successful, you will have to eliminate the foreign fighters, and all those who support and hide them, and maybe start making examples of those who merely see and say nothing.
With the family/tribal structure, you may have to kill whole families, to cut short any vendettas caused by killing only one of a family.
You will need to handle the problem when the other side starts killing whole families, with the only purpose to blame it on the government.
It's a sad fact that Iraq already has Death Squads, as seen in the recent assassination of the election officials. The Media only recognizes Death Squads if they are NOT leftist or islamic.
If the Iraqi government creates and uses hunter-killer squads, the MSM will scream DEATH-SQUAD in 3 inch bold type. It won't matter how effective or how efficient they are in finding and killing only bad guys. It will matter even less that fighting fire with fire is sometimes necessary.
Given the history of the middle east, I doubt that you'd find enough angelic types to staff such units to provide anything that doesn't make the Latin American units look like choir boys.