That's because a lot of Indians don't care about Kashmir and Pakistan. They don't even know what is going on except a knee jerk response of Kashmir belongs to India.
Many Indians look out for the state level and leave the policy to the military and central and Kashmir government.
Indian army has effectively broken the back of the insurgency, and Indians have put too much in terms of money, blood and tears.
There has been so much outside interference it is not easy as holding a plebiscite.
And whenever India has been close to a peaceful deal either pakistan ruins it like kargil or the terrorists do. Admittedly India has been at fault too.
After the Mumbai attacks the hawks in India feel vindicated and the Indians who wished to see peace marginalised.
Years and years of disappointments and cynicism have caught up.
Realistically, I don't see peace happening ever. If the posters on PDF are anything to go by.