If this is true - and the author, Abbas Milani, is a respected academic and author - it's potentially a huge deal (via):
The Green Movement (and the Ayatollah Khamenei’s clumsy response to it) has exacerbated a split with Shiism. It has accelerated the development of profound and potentially far-reaching doctrinal innovations. The course of the coming months will determine the extent to which these innovations will transform Shiism and Iran....
To varying degrees, thinkers and theologians identified with the democratic movement have been offering a new reading of Shiism that makes the faith more amenable to democracy and secularism. The most significant innovation—found in essays, sermons, books, and even fatwas—is the acceptance of the separation of mosque and state, the idea that religion must be limited to the private domain. Some of these thinkers refuse to afford any privileged position to the clergy’s reading and rendition of Shiism--a radical democratization of the faith. And others, like Akbar Ganji and Mostafa Malekian, have gone so far as to deny the divine origins of Koran, arguing that it is nothing but a historically specific and socially marked interpretation of a divine message by the prophet. The most daring are even opting for a historicized Muhammad, searching for the first time in Shia history for a real, not hagiographic, narrative of his life.
That's pretty much the kind of modernisation - the reformation, if you like - that critics of Islam have long maintained just isn't possible. Of course that's only one branch - and Shiism was always the more likely candidate for this kind of change. Still, it's a hopeful sign in an area where hopeful signs aren't all that common.
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