I think a lot of this activity is a cover for a preparation to handle the uncertainties in the Pakistani sphere as and when they arise. I think as mature democracies both India and the US must look to build on positives and "agree to disagree" on others.
So all in all: Proceed. But with abundant caution.
Powell just made a big speech suggesting that Pakistan would be a major participant in NATO exercises and recieve all sorts of defense fringe benefits. Is it not strange that India and Pakistan would both recieve this kind of treatment and not be fundementally opposed to the fact that the other gets it as well?