The Georgians really have no choice now. Fight or completely lose their freedom. They have tasted freedom after living under Russian tyranny for decades. Their retreat was also a move to a more defensible position and to protect Tbilisi. The only way into Tbilisi from the Russian current position is through two tight river gorges. And we certainly could not expect the Georgians to stand and fight against 2 Russian armored divisions on open tank territory. The fact that we still have options demonstrates that the Georgians made the right move given the circumstances. How does that go, better to run and live to fight another day then to die fighting a battle that cannot be won. Or something like that. I still think there had to be a tremendous stand by the Georgians to prevent an encirclement. The best Russian plan would have been to break of Ossetia in the east and cut off the retreat path to Tbilisi from Gori. Somehow that retreat path stayed open. The Russian could have then completely annihilated the Georgian forces that would have been trapped in a valley with an armored division on the west and in the east.
Both he and Bush have given the Russians an ultimatum now and they have thumbed their noses at it. It's kind of a question of who will make the next move and how will the other side respond. But if the Russians don't make at least some show of complying with the cease fire soon that will be their move and the ball will be squarely in Pres. Bush's court.