It should absolutely be up to them, no question. However, if one considers the likelyhood that much of the violence in that country is fuelled by revenge, executing, while perhaps satisfying to many, in some ways legitimizes a revenge mentality, I believe.
Many would agree that Saddam's regime represented Sunnis (though many might also argue that Saddam himself wasn't actually Sunni, simply Ba'athist) and was terribly opressive to the Shia majority (and Kurds also, of course). Now we have mostly Shias in charge. That's not a bad thing. But I think executing Saddam may just be seen as retribution by one side and will simply add to the sad, sick cycle of violence in that country.
Let the government lead by example. Let him rot in jail.
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