When has a boycott or ever helped in these situations? Remember the boycott and oil for food with Sadam, cutting off Cuba, the isolation of North Korea?
Sure the trade funds the dictators, but it also keeps the population healthy and informed so they can rise up on their own when the time is right.
The iranians may need to do a minor fall back to re-group and plan, but I think they can't retreat. I think now is their time, but they are going to have to do it on their own - they have to own it for it to really be successful.
About all the west can do is provide moral support and help keep the information technology alive and well for them.
And the boycott in Iraq has worked very well IMO.
Iran OTOH is a filthy rich country that really would hurt if we stopped buying their oil. And more important: it would hurt mostly the wealthy usurpers (relatively speaking). AFAIK Iran is not importing much goods which means they could probably sustain themselves foodwise. Another thing the West could do is freeze their foreign bank accounts, like the British already did. And, of course, like you said keep them somehow online and provide them with IT stuff.
could actually be the lack of free information flow and human interaction with the outside world. It's the free flow of ideas that help people fight againt oppression, not money (it helps, but not absolutely needed). Maybe it's kind of a corrolary to the "sunshine is the best disinfectant" saying about politics.
If you have followed Jason Jones reports from Iran for the Daily show, he sort of highlights how plugged in to the west they are. That is why I am pretty encouraged about Iran, they are still informed and connected. The last thing we want is for them to get cut off like North Korea is. I don't think those poor NK folks have any idea how screwed they are.