Up to 700 militants killed in Swat offensive

They most certainly are. An F-16 or what not droping 500lb bombs is heavily armed. Howitzer shells pounding a village is heavily armed.

RPG is an infantry weapon, and unless we're talking about RPG-30's, they definitely are light arms and pose no real strategic threat to Pakistan.

Suicide bombings, on the other hand, are politically volatile even if it is a crude weaponary. Such tactics are insidious as it's impossible to guard against without resorting to draconian measures. Again, a conventional military response is nonsensical to that particular threat.