Well, whatever your definition of democracy may be, unless you're willing to set the only prerequisite to be a pro-American faction being in power, I think we can agree that it will be years before we see it. The rebuilding is a necessary first step, but the organization in charge of that is a hopelessly corrupt, shambling monopoly. A little competition would help pick up the pace and keep Halliburton on its toes, but unfortunately the conditions currently prevailing there make it an unfriendly environment for business. And that's another thing - you cannot have a fully participatory government without first making sure that the people have a way of participating. If the country is run by a close-knit cabal of wealthy westernized Iraqis while 95% of the country lives beneath the poverty level, then you don't have a democracy. You have Haiti. We also need to rebuild the civil society which Saddam was in the process of dismantling during his last years in office and which we dealt the final blow to. Both of these things will take decades.
This is complicated by the fact that we cannot prevent the flow of insurgents into the country, and so even if we were to pacify the local populations, we'd still have suicide bombings and the like - not exactly conducive towards the establishment of democratic institutions.
As I said before, I'd like to think that the constitution will make a big difference in the direction of Iraq's development. The Iraqi barlaman has been given the opportunity to lay the foundations for its country's future, and I will be watching this very closely.