Should Google look to litigate? After all, they could probably quantify how much they lost during the downtime, and I'd imagine it's a pretty big number.
What does Youtube actually make for Google? I thought I read somewhere that it's not that much, considering what was paid for it. For 2006 it looks like it was $12.9m. If that rate is the same for now (it's probably more), then 1 day of Youtube earns $35,000. I doubt they would go after a country for that amount, though they would probably be upset about the outage and use whatever political muscle they have to pressure Pakistan to rethink.