Even accepting your argument, it has to be acknowledged that it has made life much harder for the Pakistani Foreign service and has hugely dimished the "separatists" to a point where they might really struggle to be heard as a voice of Kashmir. Not with 70+% voting. Will be difficult to now argue that those elected do not represnt the people.
While the emotions of the people will not change overnight, this does constitute proof that people yearn for more and as you alluded to, there is a tiring of the old ways. whether this goes into economic integration or an intellectual evolution of the armed struggle - only time will tell but the odds favour India. As of now. Unless there is a major goof-up ( and there is no guarnatee that there won't be), people are likely to stick with this path, especially if Delhi wisely opens up the purse strings and makes for visible development. Many Kashmiris want to work outside of J&K and they must be encouraged to and there must a noticable attempt at their integration (meaning less police harrasment, suspicion etc). Can be done; not easy but doable.
This might also open up the best chance to resolve Kashmir. That will depend on what the Pakistani establishment makes of this. We will know soon enough.
The separatists have their own baggage with Pakistan. Much like Hafiz Saeed cannot be abandoned overnight(both for his clout with nutjobs and his information on dirty laundry) the separatists themselves have a resonating voice in Pakistan. A lesson has already been learnt with the cutoff from the Taliban and the resulting chaos that engulfs the country, so a gradual drawdown combined with "de-extremism" is the call of the hour.
Im actually waiting to see what revelations does Kasuri bring with his book on the near deal between India and Pakistan that is supposedly sitting there in the corner always ready to go.