The U.S. government faced reality concerning Pakistan long ago. There's a difference between knowing something and publicly blasting someone for it.
Fair enough. But if the Bush admin knows the reality about Pakistan, then why have they not pressed Musharraf even privately to give access to A.Q.Khan, clean up his education system etc?
The lack of results in these areas show that Musharraf doesn't take our concerns seriously. We know that a public hint gets results.
That's why I said that our current policy is "Musharraf can do no wrong."