"Let's assume that we didn't go to war with Saddam. "

So how long do you envision 100,000+ US troops living in tents in Kuwait? Or do you say trim it down to say 40,000 troops before the summer, or when. What kind of response would you expect from Saudi Arabia if the terror attacks occur around the same period as they did?
Do you think that if we didn't pull the trigger on Saddam that Libya would decided to give up it's WMD programs? How about Pakistan? Does the leader of that country decide that taking risks, might be less advisable?

"The inspectors kept up there inspections and found no WMD."
The problem is that Saddam wasn't cooperating which means that we would wouldn't get the inspector getting to the point of verifying that Iraq had no WMD. The reason that this process took over 12 years instead of 3-4 year, was the lack of cooperation from Saddam. Saddam apparently liked the Food for Oil program, he apparently wanted that the inspectors could not to be certain that he had no WMD. In other words there is no reason to suspect that the inspectors could convincingly determine that Iraq had no WMD before, say 2010.

"The sanctions were lifted, oil for food was dropped and Saddam had free rein of oil, land and air.

Now, who did Saddam fear the most? Iran his neighbor. He wanted WMD so he could have a threat against Iran if confronted again for one. Iran was our Soviet Union to Saddam."

Saddam feared the most for his life. And if we lifted the "No Fly Zones" then he would first deal with his local problem with the Kurds- their semi-independance would end- lots would die.

"What is going on in Iran now? They are trying to make nuclear weapons and have a new longer range missile.

What do you think Saddam would be doing right now to offset Iran's powerful position?"

He would continue to prevent Iranians visiting their holy places, or he take a moderate position of heavily taxing Iranian visitors. He could continue to oppress the Shia, or he could escalate the violence. Iran can't attack Iraq with a conventional miltary: They ended their war [as far as I know] so if Iran started a war with Iraq it would be illegal and their lots of countries that could assist Iraq. Iran is incapable of doing a similar miltary offensive as the Coalition- it would take months to years of hard slugging. Iranian would get other countries putting sanction on it, etc. And don't forget Syria- it's got chemical weapons and it was Iraq only ally in the Gulf war II.