I don't want to debate at length since I don't have my facts together and rely on my research and google for my facts, whilst you living in that area would know better than me. Firstly, it seems that it is accepted that Pakistan funds and arms the rebellion in IoK? Are you saying that's untrue?
Secondly, I agree with you that the Indians do seem to hold the bellicose attitude that for Kashmiris it is either their way or the highway. That doesn't alter the ground realities though which simply is that neither armed rebellion nor war will liberate the Kashmiris. And as I stated, no plebiscite seems to be a reality in the future.
I also checked my notes and it would seem that the GDP of IoK is much higher (some ten times I believe) than Azad Kashmir and that the tourism despite the Indian occupation is higher in IoK than in Azad Kashmir. I can't seem to find any reason for this.