As far as J&K's opinion goes, my one and only argument is, ask the Kashmiris. Nobody wants to do that, since we all know the reply would be overwhelmingly anti-Indian. This is the problem with America's stance its perpetuating this injustice upon the Kashmiris by silencing the voice of the Kashmri people.
There have been in depth opinion surveys as recently as 2009 from independent groups in the UK/US including the EU parliament under Baroness Nicholson. They included a discussion on the UN status as well and why they are irrelevant. In all cases we have a pretty good idea of what the ground situation is. Not to mention that almost every govt. in the world supports the stance that Kashmir is a bilateral issue.
We KNOW what the Kashmiri people want more or less. The next step is to get to a solution. In short ,
(1) We KNOW for certain that the overwhelming majority of people of J&K including the valley people DO NOT want to be a part of Pakistan
(2) We know that the valley people mostly want independence, BUT they want independence of the entire state of J&K including GilgitBaltistan, a opinon that Fai supported as well. This represents about 43% of the opinion of the entire state.
(3) We know that as a whole majority of the people of J&K including a section of the valley do not want independence and similarly on the Pakistani side 44%want independence but the majority want to stay as a part of Pakistan.
President Musharraf realized this and hence he came with his 4-point formula which made the LoC IB but allowing freedom of movement for the people of J&K across the border.
Lets leave aside the CIA/ISI compulsions for now. Even if this arrest had NOT happened, the above reality would still hold. Fai's efforts would remain an irritant and thats about it. As normal, we should be concerned more about the welfare of the people of Kashmir at the quickest way to resolve the issue. I wouldn't support a demand of independence by Turkistanis in China, but I would support freedom of religion and fair treatment and end of HR abuse for them. The same for Chechens in Russia. Then why not apply the same in India. Mushrraf realized this after 60+ years. Will the rest of the Pakistanis too?