Bolded Part: Yes, we can. India and Pakistan had made good progress: Under Vajpayee-Musharraf and then under Musharraf-Manmohan Singh. Kashmir is far more easy to solve then many many other geopolitical issues of the world.
As for your argument about 'worn torn' place: Maybe your personal inclination is for peace but I think there is a chunk of your population which wants to undo what was done centuries ago by Muslim invaders of the Subcontinent. That historic baggage is a heavy baggage, especially under Modi. And so, there is going to be a sustained desire toward changing the demographics of Indian Occupied Kashmir with an eye out toward Azad Kashmir; your strategic (and over-ambitious) planners know that you have to reach to Central Asia without Pakistan in between and the importance of cutting off the land route between Pakistan and China.
Also, I am almost certain, your nationalist elements are copying the Israeli tactics, utilizing the Israeli Lobbies in America, and perhaps even being directly counseled by the Israelis about how to gobble up some prized real estate... But you guys don't know how risky that is, if not impossible, to duplicate Israel's land-theft in Kashmir: Neither Pakistan is Palestine nor India has America's back like Israel has.