Jon,
To me this strategy was rhetorical, possibly like the 'rollback' theme in Cold War Europe - which ended with Hungary 1956. Maybe it worked in the USA as providing legitimacy for the war(s).
'Democracy' in the Arab perspective is very different from that in Western Europe, which appears to be a ballot box decision every 'X' years. Put that alongside US support for Israel, Mubarek in Eygpt and more - the US advocating democracy was damaged beyond repair.
The 'Domino' theory appears to work the opposite way, if 'X' goes radical, then 'Y' will and later 'B'. I would suggest looking at the reaction to the FIS electoral victory in Algeria, plus the emergence of Hamas and Hizbollah.
For the "man in the Arab street" I speculate that the US strategy meant nothing; for the politically active in and out of government different reactions. Overall IMHO it did not help outside the USA.
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