1) As you know, the term "Taliban" is for a collection of groups, and TTP itself was an umbrella organization, if I remember correctly. While some talibani factions (like the haqqani network) are indeed a "veritable arm of the ISI", many other factions are baying for the blood of pak army and pak state for supporting the US in the WoT. It is those factions that are expected to turn their guns on pak after the US leaves, and it is that possibility that the pak army might be looking to avoid, by answering their call for a joint fight against India - a call that was waged just a few days back.
2) Are you saying that Kashmiris are "whipping up insurgency" peacefully as we speak? That sounds oxymoronic, because an insurgency by definition has to be violent. But assuming that you meant that kashmiris are peacefully struggling for freedom, I can only say that you have bought into the common Pakistani delusion. Seperating from India is the last thing on the minds of Indian kashmiris at present. Yes, there are often protests against the security forces, like there are in many parts of the country, and sometimes demonstrations against perceived injustices. But there is no large scale "freedom movement", peaceful or otherwise. That ship sailed long ago.
3) What better spectacle do you mean? All out war? Anything bigger than this incident would have brough swift response from India, and we would have been staring at full scale war. Pakistan is in no position to do that SUCCESFULLY against India, and by that I mean wage war with favourable outcomes.
