I don't get it at all.
I can see why Russia won't recognize Chechnya as independent. They've lost quite enough territories already. Makes sense. I suppose they feel about Chechnya being indepedent as we'd feel about, say, Rhode Island seceeding. Sure, it's the simplest solution from my own position of ignorance.
The other alternative, of course, is the not-necessarily unthinkable one. Say Russia decides the "mass extermination/explusion approach". They've certainly got the firepower to pull it off, and that's without their nuclear arsenal (no point in irradiating territory you want to annex).
No, i'm not encouraging it, just theorizing. What real consequences would Russia have to deal with? Condemnation from other nations? Big deal. That isn't going to influence squat.
Cynical as this statement is, who in any real position of power is going to care, short of say Al Quaeda?