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Maybe this thing will build into a major regional war, involving virutally every nation.

Somehow I doubt it would ever come to that. Between us and Israel, we could quickly and easily destroy the military capabilities of every country in the region. They all know that. And the rulers (especially the Saudis) also know that their continuation in power depends on there being an Israel, and on the support of the U.S.

It's entirely possible that there could be a widespread regional revolt by the salamikazis. This would be an extremely ugly situation, but I think the existing rulers would at that point work hard to take out (or turn over to us) the mad mullahs before they get to the point of threatening the existing regimes.

I think your analysis is sound. Clearly, this whole thing -- not just Iraq, but Syria, the Palis, Hamas, Hezbullah -- may be pressed to the edge until something pops. That may be Bush's ultimate plan. Press them to the wall such that they create a provocation that will give us the political and diplomatic ability to hose out the disease right here and right now. I'm for it.