The object of the operation is to demonstrate that Iran can possess such weapons whether they can in fact produce them or not. In theory - it's not a good theory, but it's operative here - this makes the current government unassailable both internally and internationally. Tehran goes over to the students? Nuke it. Tel Aviv can wait.
It's going to have to anyway. Their current missile technology is fledgling and purely ballistic. In its current state the Iranians couldn't shoot anything at Tel Aviv without a distinct possibility that it would hit Damascus, Beirut, or blow up on the pad. Not that they'd care much if it did, but it would mean the waste of a weapon.
I might also point out that the Shahab-3 is not a purely Iranian product, but a joint effort between them and the North Koreans. It appears that they have taken the first stage of the Nodong missile and placed a solid-fueled second stage of their own design on top - it would be the latter that would contain the delivery vehicle. They haven't a very good success rate by all reports (50%) and so what we must watch is their testing program.
The good news is that they're unlikely to send a suicide truck-driver across Iraq and hence the missile is probably their best bet. The bad news is the damage they could cause with mere possession of a weapon even without a long-range delivery vehicle.
Interesting Bill, thanks for the additional intel.
I'll have an update hopefully in the few weeks prior.