I found another way.

I just commented out the side:
PlayerTemplate FactionIraq
; BaseSide = Iraq
; PlayableSide = No
; StartMoney = 0
; PreferredColor = R:255 G:0 B:0
; IntrinsicSciences = SCIENCE_IRAQ
; PurchaseScienceCommandSetRank1 = SCIENCE_Iraqi_CommandSetRank1
; PurchaseScienceCommandSetRank3 = SCIENCE_Iraqi_CommandSetRank3
; PurchaseScienceCommandSetRank8 = SCIENCE_Iraqi_CommandSetRank8
; SpecialPowerShortcutCommandSet = SpecialPowerShortcutIraq
; SpecialPowerShortcutWinName = GenPowersShortcutBarGLA.wnd
; SpecialPowerShortcutButtonCount = 10
; DisplayName = INI:FactionIraq
; StartingBuilding = IraqiCommandCenter
; StartingUnit0 = IraqiDozer
; ScoreScreenImage = GLA_ScoreScreen
; LoadScreenImage = SUFactionLogoPage_GLA
; LoadScreenMusic = Load_GLA
; ScoreScreenMusic = Score_GLA
; ;HeadWaterMark = SCTempSelectPortrait ; don't use unless we add a "generalshead for non selected generals
; FlagWaterMark = WatermarkGLA
; EnabledImage = SSObserverGLA
; BeaconName = MultiplayerBeacon
; SideIconImage = GameinfoGLA
; GeneralImage = GLA_Logo
; OldFaction = Yes ; This faction was available in the original Generals and should be available even if the oldFactionsOnly flag is set
; ArmyTooltip = TOOLTIP:BioStrategyLong_Iraq
; Features = GUI:BioFeatures_Iraq
; MedallionRegular = GLAGeneral_slvr
; MedallionHilite = GLAGeneral_blue
; MedallionSelect = GLAGeneral_orng
End
Then, I copied the Observer's code, removing the " IsObserver = Yes" line:
PlayerTemplate FactionIraq
Side = Iraq
PlayableSide = No
StartMoney = 0
PreferredColor = R:255 G:0 B:0
IntrinsicSciences = None
DisplayName = INI:FactionObserver
ScoreScreenImage = MutiPlayer_ScoreScreen
LoadScreenImage = Mp_Load
LoadScreenMusic = Load_USA
ScoreScreenMusic = Score_USA
BeaconName = MultiplayerBeacon
SideIconImage = GameinfoOBSRVR
OldFaction = Yes
; BaseSide = Iraq
; PlayableSide = No
; StartMoney = 0
; PreferredColor = R:255 G:0 B:0
; IntrinsicSciences = SCIENCE_IRAQ
; PurchaseScienceCommandSetRank1 = SCIENCE_Iraqi_CommandSetRank1
; PurchaseScienceCommandSetRank3 = SCIENCE_Iraqi_CommandSetRank3
; PurchaseScienceCommandSetRank8 = SCIENCE_Iraqi_CommandSetRank8
; SpecialPowerShortcutCommandSet = SpecialPowerShortcutIraq
; SpecialPowerShortcutWinName = GenPowersShortcutBarGLA.wnd
; SpecialPowerShortcutButtonCount = 10
; DisplayName = INI:FactionIraq
; StartingBuilding = IraqiCommandCenter
; StartingUnit0 = IraqiDozer
; ScoreScreenImage = GLA_ScoreScreen
; LoadScreenImage = SUFactionLogoPage_GLA
; LoadScreenMusic = Load_GLA
; ScoreScreenMusic = Score_GLA
; ;HeadWaterMark = SCTempSelectPortrait ; don't use unless we add a "generalshead for non selected generals
; FlagWaterMark = WatermarkGLA
; EnabledImage = SSObserverGLA
; BeaconName = MultiplayerBeacon
; SideIconImage = GameinfoGLA
; GeneralImage = GLA_Logo
; OldFaction = Yes ; This faction was available in the original Generals and should be available even if the oldFactionsOnly flag is set
; ArmyTooltip = TOOLTIP:BioStrategyLong_Iraq
; Features = GUI:BioFeatures_Iraq
; MedallionRegular = GLAGeneral_slvr
; MedallionHilite = GLAGeneral_blue
; MedallionSelect = GLAGeneral_orng
End
Now, I have a side like the Civilians, which I can use for cinimatic purposes.
