The events over the past couple of days in Egypt create a huge problem for the United States. The Obama Administration wants to be able to come out for the will of the people against a dictator, but at the same time want to support that dictator because it benefits the US in their efforts on the Middle East Peace Process with regard to Israel.
So what to do? We want to support freedom and democracy. But what happens when that democracy results in an Islamic Republic (such as Iran) or an anti-Israeli government such as Hamas in occupied Palestine? The simple fact is that the will of the people does not always result in a pro-American government.
Personally, I think we should stay out of it and allow the chips to fall where they may. We made mistakes with Iran in the 70's that haunt us today. Our support for the Shah of Iran resulted in the takeover of the US Embassy and to a lesser extent the rise of Iraq and the Iran/Iraq war.
Possible outcomes may result in coming to arms over the Suez Canal or even an eventual shooting war between Israel and her neighbors. Of course, those are worst case scenarios. Hopefully, a moderate government will emerge from Egypt. Only time will tell.