I never gave Iago’s species much thought, but I never considered a lorikeet before! That said, you could probably come to your own headcanon on that point. I think quibbling on the major physical characteristics may be a bit pointless when, among other things, Iago is also a bird with human teeth.
(PPS: I remember in ancient online websites, back in the fabled days of Netscape, Altavista, and dial-up internet, he was described specifically as being a flying lamprey, which… if you’ve seen lampreys you’d know why that’s disconcerting. Most prefer eel. He has physical characteristics of both, but he also flies and talks, so I just prefer to call him magic and leave it at that. That also said, if in Kim Possible a naked molerat can climb walls, operate video game systems, walk on ceilings and NOT be total nightmare fuel, then I figure Xerxes can be the least terrifying lamprey on earth.)