Wombat, yeah I recall a bit about Operation Phoenix and the card thing. But that's not analogous to the spotter cards. The card trick in VN as I recall (IIRC) was more akin to the Mafia leaving their own special type of "calling card" when they do a hit, as perhaps a boast and certainly a warning to others.
As for hearts & minds and tactlessness, bombast and tastelessness in presentation in the Middle East isn't limited to the US and its forces. (And a lot of the press info the US wants out there and the manner of presentation I suspect is precisely and intentionally aimed to the other gov'ts in the area. Subtle they don't want to be.) The Iraqi people themselves are probably quite familiar with that sort of broad rather clumsy PR/propaganda stuff, given the rhetoric of the regime they had for over 30 years. (I mean, it's not as if they lacked for pictures and statues of their fearless leader. And now they're tossing shoes at them.)
I rather suspect the average Iraqi might not take perhaps all *that* much offense to cards depicting wanted members of a regime in which they had no real vested personal interest, given the other far more pressing matters that are likely on his/her mind. The cards (and likely the posters/handouts they'll have available for the public) are considerably more subtle in contrast to the damages, injuries and deaths resulting from the war as well the conditions present in some areas where there's a lack of electricity, clean water, medical care, law and order, etc. That is, there's plenty around to take offense to if the Iraqi people are so inclined and I myself doubt the cards themselves are really high on the list. JMO.
Now, if they had "Saddam Wanted" oven mitts or "Have you seen this Iraqi dog?" BBQ aprons or throw pillows that might be a tad tacky.