From the conclusion of a long briefing on Egypt:
Mass defiance of the president’s curfew order in the canal cities, along with persistent protests elsewhere, have deeply dented Mr Morsi’s prestige. Few elsewhere in Egypt fully share the fury of Port Said; many despise the destructive antics of, as they have been called on Twitter, “spoiled brats living out Che Guevara fantasies”. Yet the frustrations of rising unemployment and soaring prices are keenly felt, and exacerbate the political discontent.
Mr Morsi is trying harder to coax the NSF into his hitherto vacuous dialogue. He speaks with new seriousness of being open to revising the constitution. He is working on securing backing from the International Monetary Fund for economic reform. Without broad support, though, enacting such reform will be impossible, and so far he has rejected demands to form a broader-based government of national unity, an idea endorsed by leading Salafists as well as the NSF. If he could summon to such a task of reconciliation the boldness he has previously displayed in his own interest, his country might move forward. If he does not, Egypt’s divided narratives will split further asunder. Radical Islamists could seek to settle scores with those they see as challenging “their” revolution. If so their opponents will fight back, and the world’s willingness to help would fade. Miserably, his people might just decide that things were better in the old days.
Morsi got into this mess. He's got to get out of it by paying a price and making a significant concession — everything else besides the point.