re: "Obama Pays Ransom For American Diplomat"

Federale ("Federal Service Guarantees Citizenship") explains why this was not necessarily a good idea.

Money quote(s):

"(S)ubmission to Islamist and Pakistani tribal traditions have superceded international treaties that have been in effect for years. Not to mention the hundreds of years of customary law that granted imunity to diplomats. All this thrown under the bus to promote sharia law and the supremacy of Islam in the world.

This incident could have been easily ended by the U.S. informing the Pakistani government that their holding of Davis was what it was, an act of war. The U.S. could have seized a Pakistani diplomat in retaliation, cut off military and economic aid, stopped issuing immigrant and non-immigrant visas to Pakistanis, canceling all outstanding visas or expelling some or all Pakistani diplomats from the U.S. Anyone of these actions would have forced the Pakistani government to comply with international law"

At this point, I suspect that paying Wergeld was the least bad of the various options available.