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Remember that a world leader with nukes does not have to kowtow to American interests. It is clear that Pervez was not exactly towing the line for the Cheney folks. I'm sure if I google Bhutto's recent comments there is a free-market angle to be found. She certainly did not represent the poor and destitute of Pakistan, that is for sure.
I also think that Bhutto's presence has generated a huge amount of instability and she was taken care of to REDUCE that. Ultimately the opposition needed her to rally around, to give it some kind of legitimacy and a tie to the "old days of Democracy" in Pakistan.
From what I've seen and recall from his takeover, Musharaf is really not some Hussein-esque dictator. He took over a corrupt country from a corrupt leader and the nukes probably had a lot to do with it. During his term Pakistan has largely avoided major war and skirmishes with India and other neighbors.
If you can look past the "democracy" red-herring it would appear that he's their most competent leader in a long time. I certainly had no hope that Bhutto's faction would do any better.
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