That money from the U.S. was one of the major reasons that there have been 30 years of peace in the MidEast between Egypt and Israel. Sometimes practicality has to set in.
That's an oversimplification. Sure, it kept Mubarak personally at bay, but Egypt continued on a lot of negative paths that made conflict possible. Their textbooks, their state run media, their news, still laden with anti-Israeli or US sentiments.
Mubarak could have spent those 30 years and our billions to modernize his economy and liberalize the country. Instead, he and his buddies got rich for decades, by waving the eternal threat of Islamic extremists at us. It's a great self perpetuating problem, but they wound up exporting a lot of that craziness to get rid of it. Practicality has it's place in desperate times.
As an ally against the Soviets and to keep peace with Israel, sure, we had to turn a blind eye to certain things. But we let 'practicality' run its course a long time ago.
But maybe we would have become independent of arab oil early on.