One of the few coherent and well argued posts from you. You are correct to an extent - "
some" Kashmiris are alienated from India. A smaller portion of them take up arms and the remaining provide passive support to insurgency. Then there are others who take up arms against the insurgents by turning informants or joining Indian army. Then there are others who have no truck with Kashmiri cause but choose to exploit it for monetary gains by playing both sides - the core of this group form the Pakistan Flag waiving, stone pelting crowd.
With this background - there is increasing levels of realizations amongst Indian polity that Indian Govt has failed to bring Kashmiri closer to mainland and if even 50-100 Kashmiris take up arms amongst million strong populace it reflects that changes need to be bought. If your house is weak then it is obvious that others will take advantage so the priority is to bury the ghosts of the past and bring enough jobs and education to the valley so that they those wronged can look towards a brighter future.
The problem on Indian side is that it suits Kashmiri political parties to maintain the status quo and keep Kashmir in a state of control chaos as it is highly profitable to maintain the exclusive status it commands in India. If everything was hunky dory in Kashmir then the barriers seperating Kashmir from mainland will be done away with and the full integration with mainland will make Muftis and Abdullahs loose their irrelevant.
From the side of union govt - focus needs to be on training of local police so that they are competent enough to handle law and order situations and army slowly but steadily withdrawing from Kashmir except for the presence at borders to safeguard against Pakistani origin terrorists and other misadventures like Op Gibralter, Kargill, Siachin
@Joe Shearer @third eye