This is really terrible death toll. In essense, Chechnya is the result of the clash between two brands of nazism: Kremlin Nazism (Barbarism) vs. Islamo Nazism. Various Federal Forces and local pro Federal militias are completely out of control behaving as barbarian invaders on their own territory, employing dirty tactics of kidnappings for ransom, random murders, etc. On the other side, Basayev and Co. are Islamist terrorists (Islamic CheGuevaras so to speak) seeking to establish Islamic Rule in Chechnya, North Caucasus and elsewhere in Russia and have no qualms about using mass terror too (Beslan, Moscow Theatre, Budennovsk, etc.). Situation is really tough. You can't allow Chechen Islamists to win--it would be geopolitical catastrophy to Russia and to Europe as well because they would turn Chechnya and North Caucasus into the Islamic Caliphate with all the geopolitical consequences (spread of Islamic terror into Russian heartland, control of Caspian oil reserves by Basayev and the likes that would allow them to add more money to the global Jihad). But it's also impossible to close the eyes on how Russian Government barbarically behaves toward its own citizens.
Yeah, sad but true - a "no good exit situation".