Sweden for example, has uranium but to my knowledge no uranium mines. It is low concentration so instead uranium is imported. Mainly from Canada and Russia if my memory serves. The advantage of having the environmental effects on someone elses backyard is also a factor. There are probably crisis plans in some cold war storage on how to get some uranium mining going quickly in case of a heated situation between east and west.

Anyway, if they are mining their own uranium it does a lot of sense to have their own enrichment. On could probably question the economics of mining their own uranium, but I reccon it is more a political question anyhow.

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The rallying of the population to the hardliners stands seems so far to have failed.  Even if the majority of the population are for the nuclear program, there are signs that they are getting tired of the hardliner stands and have come to rather like the reformists way. The rather meagre support the violent demonstrations in Teheran had during the cartoon incident, point towards such a conclusion, the demonstrators, consisting of mostly young conservative males and members of the Pasdaran, and being only in the hundreds/thousands(?).  

Concerning their political strategy it also seems as if this was a miscalculation, with the hardliners threatening to walk out of possible negotiations if Iran was referred to the UNSC by the IAEA.  The tough rhetoric backfired and the UN process started.  Still, the Iranians keep sending mixed signals, defiance in order to save face and being willing to still negotiate with the Russians in order to keep the only option left open and not politically humiliating the Russians.    

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