Noah Pollak sees things roughly the way I do but puts more flesh on the bones (and keeps his own position somewhat veiled):

It’s clear at this point that the Obama administration has reconciled itself to a nuclear Iran and even, I think, convinced itself that this won’t be such a bad thing. After all, China opened up to the West after it went nuclear. We dealt with the Russians after they went nuclear. The Indians and Pakistanis haven’t nuked each other, despite Kashmir and all the terrorism. Neither has Israel used nukes, for that matter.

In fact, Iran going nuclear might help remove the chip on the shoulder of the Islamic Revolutionaries by making them feel as important as they hope to be because as we all know from our Iran experts, there’s an important psychological dimension to all of this; one must understand the legacy of colonialism and imperialism. The nuclear program will really be a socialization program, in other words. It is how Iran will be broken to the saddle of the international system.

So, if you’ve reconciled yourself to all of that, the next step is ensuring the smooth transition of the Middle East into a region with two, not one, nuclear powers. This is where the Israelis, and Israeli power, become a huge problem. Such a problem, I think, that the real challenge for Obama over the next year isn’t going to be dealing with the Iranians, it’s going to be deterring the Israelis.