Well they all screwed up did nt they - CIA, mossad and anyone else who directly or indirectly supported militancy in Afghanistan. I dont think anyone can predict the future as to how things will turn out.
Is there any real proof that they were involved in the attack on the Indian embassy other than what America says?
How would anyone revamp a spy organisation? The real danger is that if its power is cut then India will have an even more stronger position.
The ISI should not interfere in domestic affairs and should stop supporting militants, but with a Taliban free Afghanistan and Pakistan - how would those countries be?
Afghanistan will strengthen and move forward - its relations with India will grow even stronger. The only benefit Pakistan would receive is greater law and order. There wil no no US aid and nothing to combat India's growing influence in Afghanistan.
Sadly - either way it looks like a doom and gloom situation.
Bottomline is, that the ISI screwed up. They messed up with the whole Taliban thing, and they messed up with the country's politics, and now its basically a renegade group who is desperately trying to protect its existence. Its time to either revamp it totally, or put a lid to it. I wonder why they decided to attack the Indian Embassy in Afghanistan, because with idiotic moves like this, there will be disasterous retaliatory measures taken, apart from the embarassment we faced after Washington exposed the ISI's role in the bombing.