The best thing for Egypt, let alone the rest of the region, is for a stable transition of power in Egypt. Yes, Egypt is in dire need of modernization of its government. The Egyptians themselves will be driven a century backwards if the Muslim Brotherhood takes over. Egypt is known as having probably the worst bureaucracy in the Middle East. It also has a stilted parliament and rigid authoritarian governing party that is afraid of itself, as much as it fears change. Not just the USA, but the EU and the Arab League would do themselves a favor by helping the Egyptians figure out how to get a new leader...even if it is Mubarak Jr.
U.S. State Dept. condemns 'vicious terrorist attack' that killed Palestinian infant (Haaretz)
from the article: Envisioning an alternative Egypt, post-Mubarak