"The thing that upsets me is that the real WMD menace in the region (Iran) is blatantly pursuing WMD's and we sit idly by and do nothing."
For me, I do think we will end up officially at war with Iran. I also think we are already at war with them, the battlefields just happen to be in Iraq. I even agree with you that Iran may have been a bigger problem that Iraq, even at the time we returned to hostilities with Iraq. However, would the presence of WMD have been enough justification to go to war with Iran? It really wasn't even enough justification to return to war with Hussein in and of itself. However, WMD on top of the human rights violations and more importantly, Hussein's infractions of the Safwan Accords made war with Iraq much more justifyable than invading Iran.
You also bring up something that has been the basis of a question I have asked people for awhile now. People often ask "Where are the WMD?" Actually, that is a great question. Since we know that Suddam had WMD, where is it all now? Apparently for some, the question only matters as a mean of making Prs. Bush or Republicans look bad. The more important points of the question however, should be, who has them, what are they planning to do with them and what is the best way to deal with the answers.