First, a look back:
Mubarak is a smart guy who's been hanging onto power in Egypt ever since Sadat was assassinated. His government has walked a fine line in keeping the citizenry happy by allowing rampant anti-semitism while Mubarak struts around the international stage doing his best to portray Egypt as a partner for peace between Israel and the Palestinians. The economy is propped up (as usual) by the United States, which has since 1979 provided on average $2.2 billion per year.
Whether or not Egypt can have any meaningful reform remains to be seen. While Mubarak has eased up and allowed multi-candidate elections for president (he won last time around), most observers believe that the minute free and fair elections on a large scale are held, the Muslim Brotherhood would be given control by the people.
If the Holy See wants to make any place the cornerstone of its Middle-Eastern policy, it ought to be Iraq. Iraq has a sizeable Christian population that is loyal to Rome. It is also Shi'ite majority and those Shi'ites for the most part follow the cleric Sistani, a man who has shown much moderation towards the West.
Let's face it, thanks to Saudi exporting of Wahhabism to the four corners of the Sunni world, the Sunnis are a lost cause. If the cartoons taught us anything, it is that jihadists all around the world are in positions to easily and effectively whip up anti-Western rioting and destruction and local governments are pretty much powerless.
It's time to stop waiting for reform and start going to those who have already reformed.