1. Kashmir was going to cede to Hindustan, that was extremely clear by the fact that the leader was a kafir and didn't want to join Pakistan. We made a move to take as much of Kashmir as possible. We succeeded. Hindustan only lost territory, as it was already going to gain the Kashmir region.
2. Rubbish. Hindustan wanted Lahore, your army pressed vigorously to take it and penetrate deep into Pakistan as a whole, but it couldn't. You need to go back and research, the Hindustani army literally said "Lahore is our aim". You didn't suceed. We celebrate as defence day because Pakistan defended itself more then adequately.
3. Did you read what I said? Pakistan still holds strategic points in Kargil, if a war or another conflict in Kargil broke out Pakistani forces can pound Hindustani forces in the area. Pakistan only dropped out from most of Kargil because of political pressure, militarily it was more than capable of holding the place, despite lacking air support and being outnumbered several times over. Hindustan wanted to expand the war like in 1965, but Pakistan was more prepared then expected so Hindustan backed down. This pattern has occurred several times since then, Pakistan has learned from 1971 to be constantly prepared for war.
Hindustan simply wants to cripple Pakistan. In 1971, Hindustan tried to completely crush Pakistan, but western Pakistan wasn't the cake walk east was, proving difficult to invade and was actually able to bomb Hindustan in retaliation, because western Pakistan hadn't been going through an intense civil war and wasn't outnumbered 13:1. Hindustan planned to do it again with Israeli help in the 80's, but held off due to fears of the cost of war. As you stated, during Kargil Hindustan tried to expand the conflict and do the same, as it did in 1965. Hindustan prepared itself to do it again in 2002 and 2009 too. Hindustan is so hell bent on invading Pakistan, it has developed the cold start doctrine to try and quickly cripple Pakistan whilst keeping engagements limited enough to prevent nuclear conflict, and has also been trying to build ABM systems to protect itself in the case of nuclear attack. If you really don't think Hindustan wouldn't invade Pakistan tomorrow if it could, your head is in the sand.
4. Bangladeshis were not pacified despite Pakistan killing 3 million of them and launching an 8 month long campaign of supression. I highly doubt the Hindustani army would fare any better.
As for those POW's, we would have left them for you to deal with if you put up demands that were too high. And then, you would have had a treaty of versailles scenario where we would despise Hindustan 10 times more and never commit to peace with Hindustan. Hindustan simply couldn't afford that, so the agreements made after 1971 had to appease Pakistan to some extent, in order to maintain some level of decency between the two countries and prevent a Nazi Germany scenario.
I will bring size into this, it shows how disciplined our military is.