But as I understand it, by 2007 they were not permitted to take those guns out from their houses. This is why the US's rules of engagement pretty much stated that anybody in the street with a weapon who was not part of the Iraqi security services was fair game.

So the quoted comment may not have been entirely accurate with regards to Iraqis as a whole, but it was in fact accurate with regards to Iraqis carrying weapons in the street and the fact that there was no such thing as an armed Iraqi escort for journalists.