The same goes for Basra. The attacks from there were staged from a hospital. Obviously those are not exactly at the top of a target list. Any civilians in that hospital were put at risk because of the Iraqis purposely using them as a shield.

Exactly. And, in my book, that hospital has now become a legitimate target. The ideal situation is to avoid the hospital and try to get outside the range of any attacks that come from it. If that's not possible, then the hospital has to go, and it's the combatants who went into the hospital who should assume the blame for the civilian casualties.