I too get Karan's "monkey trap" and the status quo power game....we just wait for them to end themselves....
but,
There are 3-4 worries about maintaining a long prolonged status quo battle - off the top of my head I'll list down a few here. These are all big "if's".
1. The biggest one is we get into a two front war and as a ceasefire agreement get into signing some kind of treaty.
2. The Islamic propaganda that Pakistan has unleashed puts Kashmir on the map of Islamic jihaad that gets funded and manned by the jihaadi machinery that's at work in Syria, Afghanistan and some African countriesand soon to be unleashed in Burma and Kashmir becomes a hotspot of Islamic terrorism.
3. Some fked up leader comes to power and signs off an unfavorable accord in the hope of bringing non existent peace.
My contention is why leave a wound to fester for so long? when it's apparently clear that we are always caught on the wrong foot and sleeping.
1) Then we are screwed. India is in no position to wage a two front war at present, and it will be at least a decade before she has that ability (and that's assuming that all the planned military modernization will go as per plan). If both china and pak attack us together in the near future, we will have to cede territory. However, the fact is that even though we cannot hope to win against their combined might, we have enough might to ensure that they will both pay a price for waging war against us. In other words, we have the ability to ensure that whatever they gain from such a misadventure will be paid for dearly. That is, it will not be worth their while to try it on us. They will pay for more than it is worth. At the moment, that is all we can hope to ensure. And our military brass have repeatedly said that they can ensure that much. Which is why such a misadventure has not been attempted. In another 10-15 years, we will be in a position to ensure even more - that even the combined might of these two countries can't take our territory from us.
2) That should be the least of our concern. At the moment, the Islamic world is at war with itself. They are busy slaughtering each other from sudan to yemen to Egypt to Pakistan, just as they have always been. Them becoming a unified force and taking on India together is as remote a possibility as Martians invading us. Besides, EVEN IF that were to happen; Even if the whole Islamic world falls for Pakistani propaganda on Kashmir, and decides to join Pakistan's cause - then what? We have enough military might to ensure that no professional military (barring the US) can invade us. If they try the other method, that of trying to sneak into India and do suicide attacks, they will only be as successful as the Pakistanis. They will all get killed at the border. Numbers don't matter anymore - whether they send 10 Pakistanis or a 1000 other muslims, they will have to cross the LoC first. Our BSF and army will dispatch them to hell at the LoC.
3) That's not really going to happen. Despite what many PDFites seem to believe, Indian politicians have to obey public opinion. It has never happened before, and it cannot happen in future, that one lone person who is crazy enough will somehow give away territory to Pakistan. Especially not at a time like this, when we are stronger than them on all fronts. The beauty of being a democracy is that one person cannot judge the course of the nation's journey, a lot of people collectively do so.
As for the last two sentences of your post, as I said before, I don't like this going on for so long either, but in the absence of an alternative method to put an end to it...