Yes, yes they do. Don't try to deny it. Even if the protest movement in Egypt collapses and the Mubarak regime survives, that lesson will remain with us forever. They've been confronted with a broad-scale democratic uprising, and their reaction has been to universally condemn it. Not because of principles, either. No, it's been motivated solely by an unholy mix of realpolitik and good-ol-fashioned Islamophobia.
Remember this whenever these bastards babble about "freedom", or "liberty". Remember that when confronted with a nation crying out for freedom, liberty and democracy... they turned their backs.