The only thing the Iraqi invasion has shown the Arab world is that the current Admin is utterly ruthless, and will employ any strategy to achieve their ends. None of which has diddly-squat to do with democracy.
If anything, the presence of American troops on her borders and the strong rhetoric from the Admin give the Iranian mullahs and patriots a reason to crackdown on internal dissent by conflating it with a foreign threat, and by fanning the flames of knee-jerk patriotism, much as the Bush Admin has done in the US.
The sad part of all of this is that Iran is actually a democracy, of limited scope, to be sure, but not as limited as the scope of democracy in Israel, for example. The voices of reform in both countries are only stifled by American support for our favored factions, whether those are in power, as in israel, or out of power, as in Iran.
When it comes to Democracy, perhaps the most disturbing feature of the current rightwing lexicon is the absence of any reference to concepts such as separation of powers within government, respect and protection of minority rights and perspectives, and the whole idea of self-determination of peoples is obviously a big no-no, a totally taboo subject...
Nor are their efforts limited to overseas venues, as the proposed Constitutional Restoration Act and the current attack on US Senate rules and the independence of the judiciary should illustrate. Their version of "Freedom" is just a well disguised version of tyranny.