I fully agree with you that "Unless and until they act against Musharraf, they will have no respite from acts of jihadi terrorism originating or inspired from Pakistani territory."
This also brings to the forefront India's contention of whether the Pakistani 'intelligence' units knew of the various plots against India, including of course the recent blasts in Mumbai. And why do the Western powers not take our view seriously when we keep telling them time and again about the terror infrastructure alive and kicking in Pakistan, obviously with the tacit approval of the various Generals reporting to the 'President' of Pakistan?
Any why are the various media including in India not highlighting this issue?