The way it looks to me is that Russia is indeed moving to dominate the Trans-Caucasus, and further I feel it's rather sad to find people arguing that "sphere of influence" is still a valid argument.
It is. What else do you call the over 700 military bases the US has in many countries, all over the world? One may not like the concept, but it's part of the political reality.
Does it apply to Russia and Ukraine? Or Russia and the Baltic states? Finland? (Which Russia ruled for over a century). Poland? (Much of it, likewise.) I doubt it; I don't look for Russian tanks in Helsinki, Vilnius, Warszawa, or even Kyiv anytime soon, for which I am profoundly grateful.
Like Texas, you mistakenly seem to equate spheres of influence with the presence of military power. Military power is one source of influence, but not the only one.
Deliberately pissing off a much stronger neighbour is stupid, unless you have strong ties to a comparably strong ally. Which is why for example Poland wants increased military support from the US in exchange for pissing off Russia by hosting the ballistic missile shield.
Finland, the Baltic states and Poland are members of the EU, so they are fairly protected against Russian domination. Though with their dependence on Russian energy they still need to respect Moscow's views.
There's nothing to celebrate here. Any blow to the US in this region is small time, because there could never be a realistic expectation of American power there anyhow. But whatever floats boats.
Celebrations? No. Amusement at foolish neocons predictably getting their heads handed to them diplomatically? Yes.
The violence, death and destruction? In much of the world that's basically part of human nature. The weaker side is considered "poor, innocent victims", but they usually show themselves as brutes as soon as they fight an even weaker opponent. Forgive me for not crying a river for them.
"Innocent" civilians getting hurt? Those are rare animals indeed. In many cases civilians support the fighting actively or passively in various ways - at least as long as its going well. If you support the fighting, then you're no longer an innocent. If your support ceases because your side is losing, don't expect much sympathy from me either.
How many of the Georgian civilians who are now crying for the loss of their loved ones or their homes would have cheered had the Georgian offensive succeeded? Consider that the latter would have implied similar losses on the part of the Ossetians.