Iranian Demands

Iran has decided to do away with the niceties of diplomacy. Instead of continuing tit-for-tat negotiations over its nuclear program with Britain, France, and Germany, Iran has presented the EU-3 with a set of demands, including nuclear weapons technology, conventional weapons, and a security guarantee against Israel. Maybe there's a level of European nuance involved that my American brain can't detect, but this looks like a disaster to me. Iran called the EU bluff. Either the EU-3 can accept the demands, thereby admitting that soft power, negotiation and the EU is crap, or they can use the threat of force to make Iran back down, and this won't work because Britain is stretched too thin, Germany won't move to help it's allies, and France doesn't have enough military forces. I see nothing good coming from this.