To what extent are Saudis funding those madrassas which are part of the problem? Is there a basic split within the Saudi government's regional policy? Are the Saudis trying to play both sides? Overall how much of the problem is due to Saudi policy?

I would certainly like to see the Americans try to pressure the Saudis on human rights and democracy more. But, if the Administration actually believes the garbage they are saying about "terrorism" and Iran, then they will just be stuck between a rock and a hard place, just like they are with Musharraf.

Also, as Walt and Mearsheimer have conclusively shown, there is a very large "bubble" in terms of American middle east policy. And until the Israel bubble bursts, the USA will never be able to have a stable and positive foreign policy in the Arab world.

"The problem is that America's strategic situation in the region has deteriorated so badly since 2004 that I'm not sure the United States can afford to alienate another ally."

I question whether having the House of Saud as an ally does us more harm than good, given that we are seen to be supporting a regime that is unpopular in the Arab Street, and particularly because we are occupying the holy lands of the Arabian peninsula.

Anyway, as a political candidate I get all my foreign policy opinions from Fareed Zakaria. I think it is important to distinguish our support for the reform-minded elements of Saudi society, who are our natural allies (and vice versa) from our support for the current Saudi establishment, which is corrupt, repressive, and unpopular.

This is the same Shadi Hamid who sees the Muslim Brotherhood as a good coalition partner in Egypt.
The Brotherhood being the local counterpart to the Saudi Wahhabi Ilkwan