Of course the standard of life won't be raised immediately. It's just foolish to think "Poof! All better now!". And Humanitarian aid is going over right now (It's been shown many times on the news. Crates of water and food. I'm sure other people have seen this.)
As far as I know, the looting is now under control as well. I've heard nothing about anymore looting. Can you confirm this?
Oh, I know that Iraq isn't going to become a capitalist paradise overnight, but at the moment, months after the occupation of Iraq by Allied forces, the country is still in disarray, and it will take a lot of time to repair the damage caused by the war. It should get better, but it will take a lot of effort, and the cynic in me believes that in the long term, the US will leave Iraq in a similar state as it was under Hussein.