The problem is that the Pakistani military has no meaningful command-and-control structure. Sure, Musharraf may have no intention of using nukes, but there are plenty of mid-level generals out there on the front lines, any one of which might decide to take matters into his own hands.
You have to look at it this way: India has 1 BBBBBillion people. Lets say a war costs them, what, 100 million (which is would not). They still have alot of people and alot of land.