I think we should be wary in all our dealings with foreign powers, whether it is the US, China or India. It just happens to be that India geographically surrounds us on almost all sides, so we have to deal with them more regularly and on a greater variety of issues.
However, succumbing to paranoia will not do us any good, especially in this age where international cooperation is a must. While we should carefully consider each treaty/agreement we go into, we shouldn't use 'being careful' as an excuse to stall or scrap them altogether. We should realize that each party will try to act in their own self-interest and we should lobby effectively to ensure our self-interest is expressed as well.
In regards to this transit issue, for instance, I think there is potential for us benefiting from it as well - it is not as if Indian trucks will roll up the road(s) when they are not using it! It might be too much to expect them to always act 'in good faith', but we should expect that they will keep their word. At least, in relation to the Enclaves issue which was recently addressed, India has been keeping its word so far:
http://www.thedailystar.net/newDesig...php?nid=201847
I also think, increased cooperation and dialogue will provide us with us more opportunities to address the really thorny issues of border shootings, this horrible wall that they have put up and movement of people. You know, speaking of the Wall across the border, if this was made between countries in any other part of the world, it would have gained more attention and caused more outcry. When Israel made a much smaller wall across disputed Palestinian territory, there was a huge international uproar and the issue went to the International Court of Justice...