I'm not sure I understand your arguments. You think NATO is actually weakened by Putins threats? Seems like a rather counter-intuitive conclusion. I would think NATO unity would increase in the face of a foreign opponent. The weakness I was referring to was the watering down of NATO membership, and fact that the alliance now extends to countries that really aren't very interested in helping each other in a war.
As for Euro-U.S. relations, I was referring to the chill that occured as a result of the Iraq war.
About Putin, I can agree with you to an extent. He is most certainly a negative character. However consider that he has no interest in starting a major war. The Russian military is still a mess. Much (most) of the equipment is outdated. Training standards are fairly low, and transition to a professional military is far behind schedule. Consider that even if the Russian military reforms were 100% successful, it would still be no match for the American military. The funding discrepancy alone is staggering.
World Military Spending - Global Issues
The U.S. spends, right now, 7 times as much as Russia. Consider also that all attempts at real military REFORM (not re-armament but genuine reform) have been a failure.
RUSSIAN MILITARY REFORM: TEN YEARS OF FAILURE
Russian Military Reform - CDI Russia Weekly #239
CORRUPTION UNDERMINES RUSSIAN MILITARY REFORM - Eurasia Daily Monitor
Realistically Putin is simply pursuing a populist foreign policy that will allow him to remain popular at home, despite any real economic progress (like stemming inflation) and social difficulties at home. I believe he is the figure head of a FSB-controlled regime, that in and of himself has little influence on what actually happens.