No one is fooled by Pakistan...it is a huge cause of terrorism and it's nukes a really scary thought for most of us...but Musharraf isn't any more popular with terrorists than we are. Right now...it's better to have Pakistan as an ally in the war on terror. It's also difficult to take on countries with nukes, which is why it was better to err on the side of caution with Iraq. Musharraf may well turn out to be another Saddam..and if he does we'll have to cross that bridge when we come to it. Right now he helps us more as an ally than he does as an enemy.
Don't be surprised if our relationship with India gets stronger at some point. As Bush said at the beginning of this journey...the alliances are going to change...we are going to turn them against each other...this is not going to be a conventional war.