We see pictures of Iranians in the 70's and the style and lifestyle looks progressive, even in today's western standards. They had arguably some of the world's best universities.
Many of these people would likely still be alive today, is there much of a... reformist party I guess in Iran? Or have these people mostly fled?
My understanding--I focused on Iran as an undergrad, and have done some reading as an amateur historian since then--is that the middle-class and pro-western elements of Iranian society were destroyed and suppressed in the aftermath of the revolution.
Iran was not progressive in the 70s. The pictures of major urban centers with people wearing western looking clothing are not representative of the whole country, which remained poor, rural, and considerably agrarian until well after the 1979 revolution. The Pahlavi dynasty was inclined towards the west, both in terms of fashion, and state policy. Going back to the 30s the Pahlavis had looked to other modernizing states for inspiration in cultural policy, with the Shah calling for western style dress, the most famous example being the 'Pahlavi Hat,' though this was replaced as national hat at the 10 Majlis by the Fedora.
The monarchy feared the political power of the shi'ite clergy, which had significant influence in both urban and rural areas. The clergy, according to historian Michael Axworthy, were one of the decisive factors in the overthrow of the left-wing (sort of) Mossadegh in 1953. The Shah wanted to eliminate clientelistic political figures and weaken the powerbase of the clergy. Education was also pretty restricted, by the end of the Shah's reign, maybe half of the population was literate.
So he exiled many clergy, Khomeini most famously, and in 1963 embarked on the White Revolution, which sought to modernize the Iranian economy and win the rural populace away from the clergy. Simultaneously, the country's pro-western stance and liberal urban middle classes enjoyed the 'progressive' lifestyle memorialized in thos photographs. But the Shah's rule was solidified by a ruthless terror orchestrated by the Savak secret police, whose ties to western intelligence and Israeli intelligence would serve as an important radicalizing factor among anti-imperialist segments of the revolutionaries.
Ali Shariati is an example of the contradictions of the Shah's reign: an intellectual and iranian nationalism, who sought to reconcile shi'ism with revolutionary, left-wing nationalism. He was a student in Paris, and later wore western dress, but his political stance was firmly against the Shah and against the Shah's backers in the UK and US.
After the revolution, the shi'ite clerics and their backers in the urban lower classes and rural peasantry were the main force of the revolution, but the Shah's repressive policies had brought about an alliance between Communist, Socialist, Liberal and Islamic Republican currents. There was an intense struggle within the revolutionary process, with left-wing elements bombing the headquarters of the Islamic Republican Party, and supporters of clerical leadership fighting liberal and left-wing forces in the streets. The secular wing of the revolutionary movement was destroyed, and the revolutionary government retrenched in its anti-western stance. The Iran-Iraq war prolonged the sense of emergency and helped divide and destroy the opposition.
After the war, there was a softening of the revolutionary leadership, Khatami's 'Thermidor,' where cultural restrictions were eased somewhat, and the economy was to some degree liberalized. However, this was largely rolled back by the election of Ahmedinejad.
In contemporary Iran, from what I know, there is a serious desire for reform. That desire swept Rouhani to the presidency, but American withdrawal from the JCPOA and sanctions have hamstrung his government and weakened the reformers as a faction. It seems like many younger people are more pro-western, not politically, but in that they favor a cultural loosening. That impression is based largely on the few videos of protesters and interviews with some Iranian activists.
I'm not sure if this answers your question, and is fairly surface level, but I'm happy to elaborate on it.