I would not characterize the situation as such. You see, the biggest challenge for Indian policy makers post-1999 is, what are the Indian objectives in any war with Pakistan? Nobody has the answer to this question. As Vajpayee famously said to the generals in 2001-02, it is easy to go to war, but what are our objectives, the same questions still guide the Indian policy towards Pakistan. There is no military agenda, it is not in India's interest to dismember Pakistan. The ground realities, as I have oft repeated in this forum, are such that today Pakistan as a state and Pakistani Army as an institution are our indirect allies. The scourge of radicalization that had been used by Zia and US to counter the USSR and then by Zia in Kashmir, is something that has eroded the social fabric of modern Pakistan. In a situation where sectarian violence and increasing radicalization led insurgency against Pakistan is prevalent, any war with India may (hypothetically and keeping nukes out of here for sake of argument) lead to a potential collapse of Pakistani central authority. That shall be disastrous for Pakistan immediately and India in short and near future. So the logic of India fighting Pakistan is redundant. On the other hand, the political games over Kashmir and reactionary actions by India in Pakistan's restive areas are the norm of the great games being played throughout history by powers against each other. Since 1988, India has been threatening Pakistan with dire consequences, and it is still going on, and reverse. The one fact that neither side is willing to publicly accept is that today the situation is where the LC must be made in to a permanent boundary, regular trade ties must be established between the two neighbors for the greater good of the sub-continent, and the legacy of partition be forever put to rest. Whether you agree or not, this can not be permitted by PA as it will leave the army redundant as paramount guardian of the Islamic state and make the civil rule supreme in Pakistan, which is a situation. as any good politician will tell, where no one who has tasted power will want to loose it. On Indian side, there are still a small fraction of people who love to think of a day when Pakistan is wiped off the face of map. So idiocy, is common on both sides my friend.
Do you understand the politics of keeping people like Dawood Ibrahim alive? Or for that matter, Kasab alive? Think it over first ...