1. I always figured he had them (jury is still out on this one);
2. I never considered him a threat, figured the only time he would use them against the US was if we gave him a reason, and backed him into a position where he couldn't win. Like, say an invasion. I was wrong here; I was surprised he did not use them, and am unsure as to why he didn't use them.
As far as the photo, I suppose you are saying we did it to liberate Iraqis....a noble gesture, but I did a careful search of my Constitution and found not one mention of Iraq, oppressed nations, oppressed peoples, liberation of other peoples, or any synonyms or cognates of the aforementioned. Noble, but NOT OUR BUSINESS.