Saddam is trying to make himself out to be a victim of America, and victims don't have or use chemical or biological weapons. That is largely why Iraq is issuing press conferences & statements every 5 minutes saying 'america is a terrorist nation' or 'this war is illegal' or going to the UN, they want world approval to see them as the victims & america as the aggressors. if you bomb civilians in Israel or use chem weapons being seen as the victim is 10x harder.
Wait until Iraq realizes that most countries don't give a shit if they are a victim or not, and nobody is coming to their aid. Then they might use chem weapons or bomb Israel.......