I truly believe most of these people in these tyranical middle east countries know their leaders are corrupt and evil. I believe many know the "Great White Satan" is government propaganda. They tow the line because they have no other choice. It is mandated by government. They will be killed if they don't. Some actually learn to play the act up for all it's worth and actually receive government favor for the act.
Most of the common people just want their government to leave them alone so they can make a living, just like everyone else in every other country. A few may think the Americans will also be repressive, but they have suffered greatly with their current governments, and I suspect they doubt it could be any worse.
I believe once the "extremists" are destroyed, some may actually began to improve their lot. Iran is a good example of a country that is on the verge of shrugging off their oppressors and installing a more democratic government. Once the ball starts rolling (modernization and democracy for the middle east) these tyrannical rulers will crumble like the house of cards they are.
And even if none of this comes true, then the ONLY other alternative we have is to MAKE THEM FEAR US, even more than their petty rulers!
The reverse domino theory you describe in your scenario sounds good, if somewhat optimistic.
Unfortunately, it looks like the poor peasants may end up in the crossfire. Shot in the back by Saddam if they don't advance or anihilated by us if they do. Yes, fear is a powerful thing.