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it's been my experience that few arabic speakers learn to read the language because the written language is different than the spoken (like spanish and latin) and that only male, islamists, or politicians ever use literary written arabic. And that SEVERELY limits the subject matter.

In the case of MSA (Modern Standard Arabic) I think you're right. It's basically the 8th century Arabic of Muhammed's time, spoken in the Quran, and is not meant for light reading. MSA is like the Latin of the Middle East; all the modern dialects are derived from it. I don't think it's widely spoken outside of Saudi Arabia.

As far as dialects go, Iraqi Arabic is as different from Egyptian Arabic as Italian is from Spanish. Similiar grammar, different vocab. Arabic is not difficult to read once you know the alphabet (far easier than say, Chinese). And, there are a number of newspapers and other things written in dialect in each country, so there's no reason they couldn't have more. Aside from the cultural and political forces that have an interest in keeping people ignorant, of course.