Musharraf has flushed out terrorists from Lal Masjid to make his international standings more stronger and primarily to deflect attention from the ant-musharraf wave in pakistan.
This is not immediately a good news for India. The hardliners are definitely going to hit back, it all depends on whether Musharraf has got the will, support and luck (because i think the terrorits will now bay for his blood more than bush) to take this to its logical conclusion.
The problem is if Musharraf is toppled and Pakistan goes in the hands of terrorists, it will be bad news for India. You see a stable Pakistan is more beneficial to India than to Pakistan itself. So hold on the celebrations please.
Finally all the comments about Pakistan getting a taste of its own medicine is irrelevant.