This is complicated, so the one caution that I would throw out to all is to neither assess this as a "loss" for the Government of Pakistan, nor as a "victory" for the Taliban. Both of those entities are made up of segments of the populace of Pakistan, which so far as been the big loser in this competition for their support.
I think the last two paragraphs are the most telling:
“The hardest task for the government will be to protect the Punjab against inroads by militants,” wrote I. A. Rehman, a member of the Human Rights Commission, in the daily newspaper, Dawn.
“Already, religious extremists have strong bases across the province and sympathizers in all arenas: political parties, services, the judiciary, the middle class, and even the media,” he wrote. “For its part, the government is handicapped because of its failure to offer good governance, guarantee livelihoods, and restore people’s faith in the frayed judicial system.”
The fact is, that there is only insurgency in Pakistan of this strength due to the enduring failure of the government of Pakistan to provide good governance (how the governance is perceived by the populace, not how effective it is assessed to be by itself or outsiders). I also contend that a government can not appease its own populace, that appeasement is when one makes concessions to an outside government at the expense of their own populace.
The real issue is how the Pakis follow up. This should provide some "maneuver space" with the populace that may well allow the government to extend greater security and services into the region. The fact that it is clearly counter to what the U.S. Government would want them to do also lends this move greater credibility with the target populace.
The cries of "Taliban sanctuary" are largely ignorant extremism; because the U.S. has make it very clear that we do not feel constrained in the slightest to conduct strike operations against Taliban and AQ targets in Pakistan. This deal does nothing to change that U.S. perspective.
The U.S. needs to support the Government of Pakistan in this move; helping to ensure that they make the most of the potential opportunities, and not allow this to in fact turn into the bad deal the naysayers are proclaiming it to be from inception.
Personally, and professionally, I am optimistic.
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