"By "superpower in the Middle East" it is acknowledged that nothing will happen in the area without Iran's permission. Americans fight and die, Iran wins. An example of Bush & Cheney military genius, I guess.

Iraq loses, and France and Germany come out looking very good."

It is true that the Iranian leadership is worried about the possiblity of having a strong democratic state next door- it might give their public some ideas which doesn't include them.

I also don't see how Iraq losing is good for France and Germany. If Iraq becomes a strong democracy then that would be good for France and Germany. The long and continuing poor condition throughout the middle east has been bad for Europe.
But if you think that the volume of arms sales determine whether France or German does well, then I guess I can see your point