Very soon after the program started, due to the emergence of the Cold War, the western powers and the United States in particular began to lose interest in the program, somewhat mirroring the Reverse Course in American-occupied Japan. Denazification was carried out in an increasingly lenient and lukewarm way until being officially abolished in 1951. The American government soon came to view the program as ineffective and counterproductive. Additionally, the program was highly unpopular in West Germany, where many Nazis maintained positions of power. Denazification was opposed by the new West German government of Konrad Adenauer, who declared that ending the process was necessary for West German rearmament.
I never said Iraq should be the template, I implicitly said Post-WW2 recovery should be. I was referring to Iraq as an example of what not to do, because it was specifically called out for a purge of Nazi officials at every level, which is exactly what happened in Iraq.
As for German resistance, yes of course there were forces outside of government, and they used insiders for information. To believe anything otherwise is just being willfully ignorant, and a waste of time.