The problem is Gixer, that war is dirty, unfair, and cruel. Most civilian populations have no stomach for it, hence in the good old days what filtered back was filtered, and the effect was lessened. This was a good example of where the news can have a negative effect - the last thing you want your troops doing is second guessing "what the camera crew saw".
Its sad but true that in war, mistakes happen, look at the friendly fire indicents that still keep on happening. This Iraqi was a combatant, he decided to fight in a situation where he could and probably would be killed. As Medicboy said, but to be safe and have this Iraqi dead than the marine returned draped in a flag.