I'm going to contribute my two cents in a very casual tongue, because I am far from being an expert on the topic, but I do want to make a few valid points
Saddam was a bad dude, I don't think there's any question. I mean, even among Sunnis I think there must be those who are relieved to be rid of him. My understanding is that he was basically secular in his beliefs, his beliefs being mainly that he was THE MAN. As for how his death will be looked upon in a historical context, I don't think it will be any real milestone. Iraq, and Baghdad in particular, is just a wreck. There is no light at the end of the tunnel. The people of Baghdad are worse off now than they were before Iraq was invaded. Other populations of Iraq, like the Kurds in the North, are much better off, but for how long? Until the Americans leave?
There is no "fixing" Iraq, is it a picture of chaos, and it was drawn that way by the British and French during WW1. The West really IS the root cause of all that is wrong in the Middle East! European "conquerors" scribbled some lines on a map and thus became many of the countries in the Middle East of today (save for Iran, of course). These lines in no way outlined populations that could live in peace. It is no coincidence that dictators are the norm in these countries, because there is no other way to effectively rule.
As for the role of Islamic "fundamentalists" in this mess, it is interesting to note that Islam is the youngest of the major world religions, around 1300 years old. Both Judaism and Christianity have weathered some.. erm, interesting snags during the same time in their life cycles. As for Christianity, the Inquisition and Crusades come to mind..
Maybe these are just the rough tween years!
Anyway, I don't see the situation in Iraq improving any time soon, and certainly not because Saddam is dead. On the contrary, if he were still alive and ruling things might be much better for some :/