I don't agree at all. The same arguments could have been used about OBL but going after him served its purpose. Every day Hafiz Saeed but particularly Dawood is allowed to roam free and out of reach of the Indian justice system is another day India is made to look weak and impotent. Getting Dawood would be the strongest signal India could send to anyone who would do India harm- you mess with us, we will get you. This is the message the 2011 Abbotobad mission sent to the world.
As for using these guys as a tool to malign Pakistan on the world stage, they don't need any outside assistance with this, they are doing that all by themselves. Maligning Pakistan serves little utility to India in itself.