What do you suggest we do? It's hard to say we gave them freedom from communism since they were still oppressed. What individual freedom do you speak of? We undermined their democratic process. That doesn't sound like freedom to me.
I just want historical accuracy. The Iranian Democracy was an anomaly imposed by the British to protect their oil interests. In fact, most Iranians at the time protested the British imposition of Parliamentary Democracy in place of their historical Shahs.
Prior to the coup of 1921-1925, the Qajar Family had ruled Iran since the late 1700s. In 1925, the Qajars were pushed out of power and replaced with the Pahlavī Family. During WWII the senior Pahlavī abdicated and was replaced by his son Mohammad Rezā Shāh Pahlavī . Reza Pahlvi was pro-Western and very progressive. He appointed appointed Mossadegh to be Prime Minister and then ensured there would be parliamentary elections as per the Iranian Constitution.
This was the start of the "Iranian Democracy," but we have to admit that it wasn't really in any way the form of government the Iranians wanted themselves. In fact, by 1953, they supported the Prime Minister dissolving Parliament and centralizing power in himself. They also supported nationalizing oil and other industries. In other words they voted themselves a dictator.
The argument could be made that our efforts in '53 simply returned them to the way they were prior to 1925. The difference was Pahlavī was very progressive and modernized Iran. Yes there was oppression, just like there had always been in Iran. But the individual freedoms and economic opportunities flourished under his reign.
What should we have done? Tough call. Had we stayed out (and kept the Brits out) it is entirely possible that Iran would have aligned with the USSR, either willingly or by force and we would have lost access to the largest oil field in the world at the time. Given Mossadegh's National Front was allied with the religious leaders, it is possible that a Oligarchy similar to what they have now would have evolved in the mid-50s. This would also have limited our access to their oil, but it would have also suppressed the individual freedoms in ways that would have made the Shah look like a Kindergarten teacher.
So to say that they hate us because we put things back the way they were, but also gave them modernization and individual liberty is historically inaccurate. For Liberals or Progressives to look at Iran today and say it is better off than it was in say, 1975, is disingenuous.