Very interesting thoughts, guys. I think you’re on the right track, YH, when you say “Personally I don’t think that the US should engage Iran directly, at least not at first.” Rash actions – whether militaristic or diplomatic – aren’t usually the best course. Although I’m intrigued about the idea that more economic “carrots” (and therefore more prosperity for the Iranian people) would help any dissention or civil unrest (against the regime) rather than hurt it. History shows most of the time that unrest is inversely proportional to economic prosperity. That is to say, people are generally happier when they have more money.

I see your point, however, that the sort of economic rewards you propose are essential in growing the middle class. This in turn, is more or less essential to a revolution – a la the bourgeoisie during the ahem regime change in France, circa 1789.