Look, I don't disagree with your assessment of how butt hurt Iraq wasn't to lose all their Jews.
However, the current narrative, whether said clearly or simply implied, is that Israel is morally superior for allowing so many Muslims to live in Israel when Muslim countries within the ME and North Africa "kicked out" so many Jews. They use the population decline of Jews within those Muslim countries as evidence. This is a false narrative. It doesn't mean that Israel isn't "good" for what their treatment of Muslims within their country, but it does mean that the Muslim countries aren't "bad" just because the numbers of Jews in their countries went down.
Now, if you really want to assess if the Muslim countries are "bad" wrt their Jewish populations, you would need to look into how Jews were actually treated in those countries while they still lived there, and not really solely on population numbers.