Afghanistan vs USA
I would say Pakistan is the terrorist hotbed of that whole region, not Iraq. There are more terrorists in Pakistan than probably any other country in the Middle East at the moment. President Musharef has his hands tied, he knows if he tries to clamp down on it then they will turn on his government and oust him.
Pakistan inherited millions of refugees when the Russians invaded Afghanistan. It also inherited extremists and has become a safe haven for terrorist activity. By Musharef's reckoning, the west knew this was the case and ignored it, now it is an impossible battle.
It is very conveniently ignored by the US because Pakistan is currently a US ally. Just like Saddam once was. But it is not the US's fault this has occured. However the "war" on terrorism is clearly heading in the wrong direction by ignoring this threat.
The US is allied to a number of warlords in Afghanistan so why would they want to do anything about them. Who cares that they brutalise innocent civillians much in the same fashion as the Taliban once did. The coalition military saw this happen as the Taliban were being ousted and didn't care.
The problem with cropping poppy is that the farmers make so much money out of it they can't afford to grow anything else. If they try they go broke, and government handouts aren't near enough to compensate. I'm sure the Afghan government will be getting their cut in some way. You would hope so because the warlords certainly are and Afghanistan desperately needs resources to rebuild.