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Wasn't the issue with Iran that they were going to nationalize the oil, putting them in Russia's camp? I thought that was our reason for backing the Shah.
Also people who keep saying Iran isn't a theocracy are being willingly ignorant, just last year their democratic elections had nearly 3,000 names wiped off the ballots because the overlord council didn't think they felt in with the Sharian mold. They had a moderate president, but he had no real power, and to make matters worse he was just replaced with a hardliner, a person who was involved in the Embassy situation.
Diplomacy is fine and dandy in some cases. But when you are trying to engage in it with people who have an irrational hate for you (say the like of Hamas militants or Al Qaeda), it's fruitless. For the record I'm not saying that is the situation with Iran, but it's still not a viable option at this point.
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To win a war you must serve no master but your ambition.
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