Kashmir is worth it...
My Aunt & Uncle & cousin living in Delhi often go to Kashmir. They go because it is the tourist spot of india. Americans go to warm places because most live in cold places. Most indians live in warm places so they like to visit cool Kashmir.
Ever here of Cashmere (is that how you spell it) sweaters?
The goats originated from Kashmir and Tibet. Those goats descendents all over Asia make the wool that cashmere is made out of. However an actual Kashmiri Cashmere is worth tons.
The less countries that there are in South Asia the better off the world is. If India splits and continues to split it could get ugly. It would be divided into a hodgepodge of linguistic, religious, and economic little nations. It would make easy grounds for Nuke buying, by wealthy oil sheiks who want to give Osama a birthday present.
In any case if it becomes a full-dress shooting war, it would get messy.
Pakistan is a traditional US ally, but Clinton was wise enough to realize that India was more important to the US: it serves as a counterweight against China, and Islamic extremism, and it has a far larger market for buying US goods.
So the US would probably sit on the sidelines. If this overthrews the Pakistani government and a TALIBAN like regime is placed than informal help from Arabs would try to balance the fact that India's military power from the sea and the air is likely stronger than all of Pakistans.
India has more troops, ships, ammunition, tanks, planes, and technology; it would be a slaughter. Last time there was a war Indian troops took a quarter of Pakistan before it's march to the major cities was slowed. In fact Indian troops this time might as well take Islamabad, then Peshawar, the Kandahar, and culminate victory over both Pakistan and Afghanistan by taking Kabul. Then it can set up friendly democratic regimes backed by the world's money and Indian troops.
This however is unlikely. There won't be a war but the US will get the two sides to meet, and they will adjust the map a tiny bit.