There was no mention of occupying Pakistan. India needs to eradicate the terrorist threat. They will use all force necessary to accomplish that. India believes Musharraf is not willing to use his forces to control the border so they must. You seem to agree that India will take action soon if Musharraf does not. Once it starts, the objective will be to neutralize the threat as much as possible and hopefully get a more moderate government in charge.
How is India supposed to eradicate the terrorists by blowing up Pakistani tanks and aircraft? The only way India could eradicate the terrorists is by successfully occupying the country, something which I doubt they can do.
Assuming they do lay a whipping on the Pak Army, does that necessarily lead to a new Pakistan government which is better able to control the country (presumably without much of a remaining army)?