imo Georgia is playing reasonably smart right now. They are giving up territory like Gori to preserve their fighting capability. The may also be trying to get the propaganda upper hand by drawing the Russian into Georgia proper, thus changing the perception of this being about South Ossetia and more about Russia invading Georgia. Perusing the news outlet will confirm this. As already stated, they will shift to fighting a defensive guerrila war alone, hoping to be resupplied and reinforced by the West.

The tide of battle will rapidly change if they can take out the Roki tunnel.