Casascius and everyone else, I think there is some confusion here. No one is proposing we launch a massive marketing campaign to get Bitcoin to Iran. Even I think that is not a smart move. However, I strongly think we shouldn't be actively reducing the possibility of regular people in Iran to use Bitcoin.
In fact I think that translating Bitcoin-Qt to Farsi, LocalBitcoins to Farsi etc, is a noble goal. Just like translating them to all other languages is. I think it's smart to provide the tools for people to use Bitcoin if they wish but actively and publicly encouraging people in Iran to use it is not necessarily a good idea and I understand the risk it might pose.
Making it harder for them to use Bitcoin in purpose is in my mind ethically worse than anything. From a practical sense active promotion would be stupid as well though, so why won't we find a middleground. The reaction Jeff had in IRC was not a middleground, the ban was out of line. Jeremias didn't encourage illegal activities, all he wants is to make Bitcoin available everywhere.