Here's the problem, as far as I can even begin to figure it out.
The point of propping up Georgia as a budding democracy is that the west, the EU, US, etc., need some kind of positive example among the former Soviet states. The objective is to see the former Soviet states all turn into politically stable, democratic, free, and economically prosperous political entities. I.e. remade in the likeness of the western European democracies.
To all intents and purposes Saakashvili's Georgia has been the best candidate for that for years. Still is.
Except with the decision to try to use force to resolve Georgia's internal issues, Saakashvili in fact shoot himself and all of Georgia in the foot, Big Time, while making his western backers completely lose face, allowing Putin et al. to ride high and mighty, after having this present dropped in their lap.
At that point the westerners betting on Georgia cannot 1) just drop it, or even 2) publicly rap Saakashvili's knuckles for doing a) something as damn fool as trying military force in the face of a Russian no-go, and b) in fact pissing all over what a western democracy is supposed to be about these days.
In a previous discussion RRW and others suggested my stance was that rub of the conflict was simply that the western democracies "mean well". That's reducing the issues involved to kindergarten level. Besides, that's not it. The point of the western democracies is that you are not allowed to shoot some of the crew underway while manning the ship of state. That goes for Georgia with respect to irredent provinces as much as anyone else.
The point of the western style liberal democracies isn't that they are full of "good people who mean well". They are in fact full of bad people (or as morally ambiguous as the rest of humanity), but operating within a system that has proven relatively good at making even bastards conform to certain basic standards, due to the way the game of politics are played. (Democracies get off on compromise, rule of law, and trying to square the circle of respecting all manner of minorities; non-democracies tend to favour forms of "maximalist", winner-takes-all politics, loser-gets-to-die at least as an optional extra.) Already the ancient Greek knew that if the Tyrant is a virtuous man, so will his state be, and all will be well. They also knew that the nature of power is such that virtue tends to become a non-option for a tyrant eventually. (Apparently we have a number of posters around here who do consider Putin/Medvedev men of virtue, with whom one can safely entrust the future of Russia, and whatever neighbours get caught up in the action.)
Anyway, Saakashvili broke against a whole slew of basic precepts of a democractic society. If that was all that was allowed, his western sponsors would drop him like a shot.
But since Georgia has now had Russia walk all over it, between these two political entities, Georgia is still a better bet for a democratic development than Russia. The trajectories of the two were, until the conflict, such that Georgia was closing the gap towards what's considered acceptable western standards of democracy, while Russia is moving away from it. And Georgia is still the star pupil, as it were (the competition in the region isn't overwhelming), of liberal western democracy among the former Soviet republics.
Drop Georgia, and we can be sure it goes to the dogs, depriving the west of its best bet on getting a state in their likeness to work as a positive example in the region.
Of course, Saakashvili turning out to be a homicidal fook like this hasn't helped anything one iota.
And then there's of course the matter whether some people even consider western style liberal democracy worthwhile in the first place, or just a lot of shambolic hypocrisy.