Actually both sides were right: (1)Iranian people joined modern anti-capitalist world, (2) and this world is a very gloomy place indeed.
"Sometime around 1760, Britain, then France and America took off to another world, one that was increasingly secular, democratic, industrial and tolerant in ways that left many of the other regions gasping at the combined implications of such changes."
Do not get me wrong these achievements are great on its own merit, however, there is an established custom to wildly exaggerate them: yes there is a tradition of tolerating minorities (first religious, then ethnic and after that racial), however, countries composed from several large religious/ethnic/racial groups are invariantly split (or are in the process of splitting) along the group borders with only few exclusions (US, Belgium, Switzerland).
So, when we are trying to analyze the real situation in the Muslim world it makes sense first to look at our own society without rose glasses. And surprise, surprise the solution would not be far away. First, we have to concede that we are not ready to lead active transformation of Muslim society, because we do not understand our own well enough. Second, we have to look at the positive examples of societal transformation achieved in the past:
1. Reagan policies toward FSU. Everybody knows about his tough stand against soviet expansion, however, practically nobody is paying any attention to the fact that in all cases he was very accurate of not starting any offence on its own - only counter offences. So, this way US forced FSU's public interest to be switched into its internal problems, forced to boil in its own kettle and result is very well known.
2. Transformation of MA politics - MA is a single party state and dems are left to themselves and I do not see many politicians here talking traditional liberal nonsense about clean elections, raising taxes, banning private business, closing churches etc etc.
3.Australia: society of criminals left alone and forced to solve its own internal problems transformed itself beautifully.
I suppose the same approach should be taken to Muslim world: let us leave them alone, let us stop buying oil from them, let us allow them to boil in their own kettle, solving their own problems. The policy should be somewhat reminiscent of Reagan policy toward FSU: severely restrict any attempt of expansion beyond their own universe, prod satellite states to fall off, advertise our values: music, movies, jeans and coca-cola.
Human nature is human nature, so the thing which worked wonders in such diverse places like FSU, MA and Australia, may solve these problems in practically no time.