The dialogue with Pakistan is more important than ever before - such attacks though it might have happened with the complicity of the Pakistan Army. A K Antony's statement should not be read as cowardly because it is open ended - it does not rule out...
The Congress is looking at the elections as a state level game rather than a presidential election. That explains why it has appointed low profile MPs in the new cabinet reshuffle but kept their star faces for the Congress party.
Coalition politics is difficult to manage and the Congress government has probably worked around it by putting Manmohan Singh in the administration while Sonia Gandhi handled the varied political parties with differing opinions.
The government will fuel the alienation within the people of Kashmir further by gagging the media, whereas it has done precious little on the ground to improve the situation in the valley.