Let's not forget that the conflict is over the Kashmir Province and that China (another nuclear power) also controls a small part of said province - AND that India and China are old enemies. A nuclear conflict can spread.
OK - so the chinese controlled part only consists of mountains and glaciers - but still.
And India - or more likely -Pakistan might use nuclear weapons if pressed back far enough. So the threat isn't purely hypothetical - although not likely at the present.
To me a more likely senario will be India keeping up the peasure until the Pakistani economy collapses - just like USA did to USSR towards the end of the cold war. Pakistan have allready used up their entire defence-budget for 2002. They just can't afford to keep up a massive deployment of troops in the long run.
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