I think that Bush is proud of what has happened in Iraq so far...rightfully so, IMHO>
However, like you said...he might not want to say what he said...it could be years, (if ever) that they actually start getting the hang of this whole "democracy" thing.
Especially considering their "automatice" response to this Israel/Lebanon thing...they just knee-jerk blast Israel...when Hezbollah is doing to Israel...what the insurgents are doing to the Iraqi citizens.
I think he's proud of Iraq too, and so am I. But I wouldn't be suggesting that another country model themselves after Iraq yet. It's too early and too destabilized.