Furthermore their advancements enabled them to outmanuever our top rated spy drone, rest assured, their drones would be flying over NYC and our major cities in due time
Did the Iranians bring down our drone, or did it crash?
Where will they be launching drones from, that are capable of striking New York?
Your primary point is well-taken, that Iran would not sit on their hands after an attack, but nuking Israel seems a stretch. They would be nuking the neigboring Muslim populations at that point, and the cloud would certainly reach them as well... not to mention that the Israelies and the US would then annihilate them.
That being said, the Iranians could certainly raise hell at the Strait of Hormuz, simply by scuttling a few ships. It narrows to 34 miles at one point and the channels aren't very deep.
An invasion is impractical as well. They're much larger and more populous than Iraq, and they're largely homogeneous as well... so we can forget the idea of turning them against each other as we did somewhat successfully to the Iraqis
In all I agree with you that an attack on Iran would cost more than it could possibly be worth, but I don't see a nuclear exchange being involved there.