By your logic, the Korean peninsula should be under Chinese control right now, as should South East Asian countries bordering China. You cannot dispute that China is a regional powerhouse, but her borders with neighbouring countries has not changed since 1949; land borders are clearly not a good indication of a country's strength. China has not overrun any neighbouring countries since becoming a regional powerhouse.
If you think that India can only be a regional powerhouse by successfully invading Pakistan, then you're sabre rattling a bit. China never had to prove her regional dominance through invasions of the Korean peninsula or conquests of South East Asia and India doesn't either. Contrary to your belief, India can be a regional powerhouse without having to prove it by invading (or attempting to) Pakistan.
Either you don't understand the issue or don't know the history, Indo-Pak has fight 4 wars, more than half dozen engagements, Incidents and stand offs with the last one at the beginning of this year 2013
Issue isn't what India does, it's the attitude they give, I mean when the Y-20 first flew, Indians were saying that it doesn't have a have a rear cargo door!? I mean come on its a prototype for heavens sake, always ready to discount anything anyone else does yet show off themselves as leaders in the process, I remember hearing same thing that JF-17 will never fly, then it will never be a operational aircraft, then it will get a export and on and on
I hope we can live side by side and we never see another war or border clash, we share a border and will do for a long time to come so it's in our best interest to keep lid on things, however in this particular case I do know that there won't be lasting peace until all of the issues are resolved from North to South, which are very unlikely to be resolved, only solution is deterrence by keep building military