You have a very strong point but you raise the point but then you lose the high ground too. See now that Kashmir cause is linked with terrorism, not only they did violence in Kashmir but also out Kashmir and other parts of India. Today in the world no-one gives a damn about Kashmir cause. It is fact, that none cares. Also people see that Pakistan has its own interest in Kashmir cause, which actually harms it.
In real world not everyone gets what they want and this is how the world works. Think if everyone had the right to chose their country it would be messy situation in world. People has to accept that not every time, you will get what you want, sometimes it is better to compromise for the sake of everyone.
If there is no violence in Kashmir, they have the most rights in this world. None other place or country has this right given to its citizen that no external entity can buy land. In fact of Kashmir becomes independence they will repeal this law themselves.
Peace has its merit, if peace exists and everyone lives happily, a small issue of which country you should be should be ignored.