S0219, Combination Chemotherapy Followed By Observation or Surgery in Patients With Stage II or Stage III Cancer of the Urothelium

DISEASE CHARACTERISTICS: * Histologically confirmed muscle-invasive (T2-T4a), node-negative (N0) urothelial transitional cell cancer (TCC) of the bladder * Focal squamous and/or adenocarcinoma differentiation, defined as ≤ 10% of tumor volume allowed * The following diagnoses are not allowed: * Small cell carcinoma * Sarcomatoid components * Disease diagnosed with an initial transurethral resection of bladder tumor (TURBT) and a second TURBT performed within 8 weeks of first with attempt to remove all tumor present * Residual disease after second TURBT allowed * No more than 14-56 days after second TURBT * No metastatic disease by chest x-ray and CT scan or MRI of the abdomen and pelvis * Fresh tumor tissue, paraffin tumor tissue, unstained slides, or cell block specimen from one or both TURBTs available PATIENT CHARACTERISTICS: Age * 18 and over Performance status * Zubrod 0-2 Life expectancy * Not specified Hematopoietic * White blood cell count (WBC) at least 3,500/mm\^3 * Absolute granulocyte count at least 1,500/mm\^3 * Platelet count at least lower limit of normal Hepatic * Bilirubin no greater than 1.5 mg/dL * Aspartate aminotransferase (SGOT) no greater than 2 times upper limit of normal Renal * Creatinine no greater than 2.0 mg/dL AND/OR * Creatinine clearance at least 60 mL/min Other * No prohibitive medical risk that would preclude radical cystectomy * No other serious concurrent systemic disorder that would preclude study compliance * No …