1 - That the present Iraq "policy" (too dignified a word) of the US was formulated in Israel doesn't mean the former one wasn't. Dual containment was Martin Indyk's - the then head of the Washington Institute, AIPAC's think tank - brainchild.
2 - Although Wolfowitz works for the ultrazionists, he opposes Israeli sales of military hi-tech to China. This could just be a cover to keep the Pentagon's doors open, as Israel is deeply distrusted by the US defence establishment, enraged by the Israeli transfer of stealth- and AWACS-type technology to China. The U.S. has never been able to stop Israel from selling sensitive technology (like the Lavi fighter's stealth technology) financed or provided by the U.S. to potential U.S. opponents. Just as it has been powerless against Israel's passing on the fruits of Jonathan's Pollard's spying to the former USSR.
3 - Sharon proposed that Israel attack Iraq at a cabinet meeting in 1991 during Desert Storm. His rationale was that the US-Arab coalition against Iraq would make demands of Israel after the war. An Israeli attack against Iraq would split the coalition, forcing the US to choose sides. News of this outrageous proposal that left the cabinet shocked reached the Knesset plenum. Stunned to the core, Knesset Member Yossi Sarid drafted a press release saying "today's utterances by Sharon are wild and insane, made by an adventurer devoid of inhibitions, determined to bring a calamity upon Israel." That even got through the censors, so Israelis can never say "we didn't know". Today, that very lunatic is controlling the heavily armed foreign policy of the planet's only superpower.
Hakki