For more thoughts, please see:
Freedom, Wealth, and Peace,
Francis W. Porretto
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I read an article in my paper about this issue. The author's thesis was that multinational companies put the pressure on the Indian government to tone down the war of words. These companies have based a lot of their technical infrastructure in India, and communicated to the Indian government their desire for a stable business environment. The Indian government decided that they like the multinationals more than they hate the Pakistanis.
In reality, I think there are a good many reasons why the Indians and Pakistanis didn't go to war. Nukes, business, politics, and allies all figured in to the equation.
It's what will Saddam's offspring do with them? What if the next guy to be the leader of Iraq is even crazier? What if Saddam decides to sell these weapons to al Qaeda? Or to the Palestinians? There's lots more to this question than just is Saddam crazy enough to do it...