You're not wrong on any of this. The US did plenty to prompt the uprising against the Shah - and at least some of those 444 days had to do with Reagan's maneuvering to make Carter a one-term president (what we now know as Iran-Contra). As someone who lived in the US through that, I can tell you there was a good bit of anti-Iranian hysteria, and in retrospect I have to wonder how much of that came out of US partisan politics and how much from news organizations using the situation to sell papers / grab eyeballs - not dissimilar to the 2016 media Trump clown show.
As far as Israel goes, the US has completely lost its ability to present itself as a neutral party, which I think it might have been as recently as under LBJ. But we in the US now have to deal with not just the Israeli lobby and the Jewish vote but now energized Evangelicals who see Israel as a key to the return of their prophet (something I had a hard time believing at first) - oh, and the destruction of the rest of us 'unsaved' types.
I have absolutely no idea what the first steps might be to sort this out, but there does not seem to be a good reason for the US to continue to be involved in the Saudi / Iranian conflict - particularly now that MBS has effectively told us to 'get lost'. I'm talking about ending both the stationing of US troops, military airplane support, etc. in SA and sanctions on the Iranians.