Hey, the Iranian government may be many things: repressive, anti-Semetic and so on, but they are more-or-less democratic and freely elected. Granted, the clerics have final control, but every country has its entrenched elite who can skew elections. In the West, it's the business class, in Iran it's the mullahs.
As for the Nazirific story, either it's fake and/or unconfirmed or else the Iranian government has very, very good contacts inside the media to keep it from spreading. I think it's probably the former. I'll try asking my Iranian friend about it.