It is interesting to see how this apparently simple point is so easily misunderstood. I don't claim compatibility or incompatibility of Islam with anything. I simply think religion must find its proper place in the society as a system of beliefs that is practiced freely by individuals.
What I have heard from Ms. Ebadi on the contrary is to try to reconcile everything with Islamic theology. An example was given by her as to how Ramadan fasting may be modified to address the needs of the individuals who live in the North Pole. I think it is absurd to think you can generalize from this to conclude that Iran's in-depth problems may be solved in this manner.
An enlightened Iranian cleric whose name I do not remember once wrote that by limiting democracy to Islam we may think we have discovered a new form of democracy but in the process we have really devised a new form of dictatorship. I believe that Ms. Ebadi should set an example of a Muslim with firm beliefs in human rights and democracy. Unfortunately to my disappointment, she has apparently chosen to become the harbinger of an unknown Islamic democracy.