One disconcerting aspect to this is that it comes on the heels of a proposed profit-sharing deal for Iraqi oil. The Kurds are on the verge of allowing foriegn companies to come in and start drilling, but if the Kurds do move towards independence, that deal could fall through.
Expect Turkey, Iran, Syria, the Sunnis, and basically everyone else in the area to get pretty angry about this, as they all stand to lose. Turkey and Iraq, especially, will feel the temptation to invade the Kurdish north, on the pretext of cracking down on Kurdish seperatists.
But you know, if Turkey and Iran do invade Kurdish territory and start a bloodbath, well, at least they'll do it in the name of fighting terrorism... and that's what matters, right?! ;-)