Whatever the political structure of Iran is, it is clear that (a) Ahmedinejad does have some power, (b) the system of government DOES involve the Iranian people and is clearly far more democratic than Saudi Arabia, Jordan, Egypt, Pakistan and pretty much any Arab country other than Turkey, and (c) is quite complicated.
In the US in 2004, we had to choose between two rather mediocre politicians who attended Yale and were both members of the elite fraternity Skull & Bones. I would say that the mullahs gave a more expansive choice to the Iranians in selecting a leader than we were given here in the suposedly democratic USA.
It would CLEARLY make sense for the next US president to sit down and discuss the various problems between the US and Iran with Ahmedinejad and whomever follows him, just as it made sense for Nixon to meet with Mao, or Reagan with Gorbachov.
It would make sense for Juniorbush to accept Ahmedinejad's various invitations to talk as well. But either he is too stubborn, or the oligarchy that pulls his strings is too stubborn or perhaps they seriously want to monger a third war.
There is really no reason for the US and Iran to get into a violent confrontation. It would be bad for both countries and their people.
Iran has no reason to want to annex Israel or Palestine, either. As Shiites, and the defender of the minority Shiite sect, Iranians know how it feels to be a second-class citizens because of religions, so it is natural that they would side with the oppressed Palestinians over the domineering Jews in Israel.
By oppressed I mean that an entire Palestinians family can have their ancestral home utterly destroyed and prohibited from being rebuilt forever, based on the suspicion that a member of the family is a 'terrorist'.