How does it matter if they watch or not. As of day, there economy is in shambles. Last time India had a tour all the money PCB got was from Indian companies.Because Joe Public in Pakistan is far more likely to watch IPL if players from their land were welcomed than if they were excluded for being Pakistani. No?
And as for BCCI (or any cricket board for that matter), their accountability to the country they represent is on very murky ground. BCCI in particular is a federation of cricket associations, which in turn are associations of private cricket clubs. It is most certainly not part of the Indian government and IPL profits made by BCCI do not go to the benefit of the general public but for the benefit of these private clubs. (In theory. Who knows what happens in practice. BCCI is claiming - in a court of law - that it is a private charitable organization!).
Rather than that, it is their government which should act on terrorism. Even if it means a sporting cut off, no issues. Sports diplomacy has happened many times. nothing concrete has ever worked. Rather now this sports diplomacy "Which they call" is purely coz of a reason that players make money, or wen indian team plays PCB make's money. For selfish reason such diplomacy never work. IPL still will be very exciting in India without pakistani players. We will have equal amount of levels in stadiums with more matches and 2 more teams. I would rather not recommend that option. Sitting in US, you cannot understand what viewpoint is there in Delhi or Mumbai