If Iran was legitimately interested in having relations with the West then they would allow religious freedom, release political prisoners, introduce free elections, recognize Israel's right to exist, stop sponsoring terrorist organizations, and apologize for holding our diplomats hostage. Since they didn't do any of those basic, simple things then I don't believe for a second that they were "desperately" trying. People who are actually desperate do whatever it takes instead of the bare minimum.
President Bush certainly bungled the situation as well.