What exactly about it would you say is 'wildly unrealistic?'
If the object here is to give away a lot of money to the Iraqi people, then you're right: we can do that now, without any problems. Indeed, we wouldn't even need to tap into the Iraqi oil revenues: we could simply withdraw all of our troops and send a monthly $100 check, drawn on the US Treasury, to every man, woman, and child in Iraq. Given that the costs of the war are approaching $9 billion per month, that solution would be both cheaper and quicker than the current policy.*
If, on the other hand, the object of this plan is to end the insurgency and start Iraq on the road to a western-style democracy, then it is simply throwing money at a problem that is not amenable to a monetary solution. The insurgents may be fighting for a variety of reasons, but they aren't fighting for money. Instituting a plan to divide oil profits among the people would do little to address the fundamental reasons for Iraqi discontent.
*Iraq has a population of around 25 million
. At $100 per person per month, the cost to the US government would be a paltry $2.5 billion, and thus would net a savings to the taxpayer of nearly $6.5 billion per month.