Agreed. This is what needs to happen. The "reform" movement, and the whole false facade of a democratic government with which the mullahs supposedly share power, simply acts internally as a buffer between the tyranny of the mullahs and the people, and externally as a means of acquiring diplomatic legitimacy, aid and foreign investment.
Mass resignations and the effective collapse of the "democratic" government is the best thing that could happen now. Clarity if better than pretense.
Presumably the mullahs would react by filling the "elected" government with corrupt and subservient hacks, which will only increase the anger of the people and broaden the base of the protesters.
The mullahs actually need the putative malcontents -- the so-called "reformers" -- there to prevent the public at large from falling behind the students and other anti-mullah activists. Naturally most Iranians wish to be spared the potential chaos and danger of revolution. As long as it's possible to believe that there is an evolutionary process in place (the "reform" movement) then most Iranians will hold back from throwing in their lot with the radical "pro-democracy" forces. It's time to eliminate this diversionary fiction.