If true it is a set-back. Nevertheless, the Iranian government is an enemy of many of the things we hold near and dear. Were it not for Al-Qaeda and the Taliban, Iran would be our #1 burr under the saddle.
There are a number of indicators (nuclear weapons program, sophisticated and effective tactical weapons, etc.) that suggest that the Iranian people are technically astute and capable. Furthermore, there is a long history of aggression and conquest in that part of the world.
Even if the government is an enemy, we need to respect them!