I don't know about nukes. They'll catch uber hell if they're used.
Personally, I want to side with India on this. We (the USA) keep telling other countries like India and Israel to show restraint, to back down, to use diplomacy, but we don't ourselves.
Diplomacy is nice, but having a double standard is just embarassing to no end. I would rather people hate me because I'm their open enemy than hate me because I'm a backstabber.