I hope that for the sake of practicality and to an extent righteousness you understand that it is not possible for Pakistan to dunk India out of Kashmir which is logistically connected to the Indian mainland.
If there is a "great battle of Kashmir"...I can guarantee that the status quo would be maintained as it is the most mutually beneficial option of all the other options.
Your argument
might stand for Ladakh and Jammu, but you're turning a blind eye to the most populous and rebellious region, the Valley. They will never be satisfied with the status-quo, and hence, you will never be able to achieve true peaceful relations (or righteousness).
If self-determination is not acceptable to India (which it clearly isn't), then at least you must compromise on the Valley so that all parties can be satisfied. Line of Control must move East in the Valley, with about 70% coming into Pakistan and remaining 30% in India. However, this solution will be unnacceptable to you as it will make you seem like you're on the losing side (and any political paty that supports this would never again win a seat in India). Hence, we are in a situation where either India loses territory or it continues to occupy for much longer, and we know which path most of you would prefer.
Status Quo helps India and works against Pakistan. It is in India's interest to maintain the current situation and give up an inch for any resolution.
The more time, India has, the stronger side we become in Kashmir.
Status-quo works against both Pakistan and the majority of Kashmiris in the Valley for whom it has been unacceptable since 1947. It does, you're correct, work for India. But the fact that only India will be satisfied with it alone will ensure that no matter how "strong" India gets there, it will never be able to occupy the people forever. Like I said, you either lose territory now and save face, or you lose territory a hundred years from now and get humiliated.
OR! Here's a crazy idea, let the Kashmiris choose for themselves! Each district gets to choose its destiny, which is a right they've been denied by you thus far.
Edit
Sorry, I must say something about the topic of the thread as well. You all know very well that Hafiz Saeed isn't very popular on either side of the border. The only reason his speaches get so much media coverage in your part of the world is because you want to hang on to
some hope that you're not
completely in the wrong in Kashmir. It's more for self-reassurance than information.
Similar meetings held by extremist people in India rarely ever get any air-time in Pakistan (and don't you dare argue that similar rallies aren't held in India), because we don't require self-reassurance that we are right in our stand. At least not as long as 14-year old boys get killed while playing Cricket and peaceful rallies are forefully broken up without legitimate reasons in Srinagar.