I think you are a bit confussed! You keep coming back to Iraq? Here's the most recent poppyScotland report which may give you some solid facts on where money goes;
http://www.poppyscotland.org.uk/docs/PublicationAndDownloads/Annual_Review_2007.pdf
I think you may need to seperate the British Forces from the US ones. While I abhore the current war in Iraq, the two are seperable in their activites. I am in no way justifying our involvement, but there is good to be found in what we are doing there (cue much abuse I'm sure);
http://www.mod.uk/DefenceInternet/DefenceNews/InDepth/UkMilitaryOperationsInIraq.htm
Obviously, this is a defence website - and no doubt will be slaughtered as complete bias and essentially lies by some.
Fair enough, you have explained why you personally don't buy a poppy, but I completely disagree with encouraging others not to, based on Iraq. You have, in my opinion, a contraversial view point, and I do not agree with it.
More and more I think that HH is no longer a place for me. Which is a shame, as I've been around these parts since it's inception. But maybe it's time to Foxtrot Oscar as the military say.