Mushy visited China a week back and came back with a deal to 'buy' 2 chinese nuke power plants. Ostensibly, this is a ploy to pressure Bush into a civilian nuke deal with Pak as well.
The US could easily squeeze Pak so hard economically alone, Pak will collapse within a week.
Right now, we deal with Iran first. India has suffered Pak sponsored jihad for years now. In another 10 yrs it'll be so far ahead of Pak in every conceivable sphere that Pak will have as much nuisance value as Bangladesh does today (minus the immigration timebomb though).
Its easy to pigeonhole behaviour and call folks stupid. State isn't perfect but it isnt blind either. Their considerations extend to beyond south asia and into central asia and the mid east. We dont want a Pak becoming another north korea right now, IMHO.
Did Bush mean what he said, or not?