I couldn't disagree more with your analysis.
This is a time of transition, and none of the paradigms adopted by the previous regime remain sacred. It is clear that the PLA, the PLA AF and the PLAN are modernising rapidly. Slower than they wished, but faster than we are. It is also known to us and to the rest of the world that the military machine that jarred the fillings in the teeth of the victorious US Army emerging from WWII, that swept through Tibet, and that used a brilliant military campaign to beat a hard-bitten professional force only twenty years away from facing down both the Wehrmacht and the Imperial Japanese Army is not to be under-rated at any time. They are not the kind of organisation that gets into ego trips and pushes the envelope, just to impress itself and its girl-friends. Whatever they do, they do for a reason, a national purpose.
The PRC sent us a message, a loud one. They don't want to drag things on, not any more. They want a resolution. Unfortunately, that window when we could have exchanged Aksai Chin for their claims on Arunachal is closed. I doubt that we will get an easy solution, as things stand. But there isn't much choice. We cannot match the Chinese, not with our logistics in the rickety condition that it is in, not with our mountain divisions bereft of a policy for mountain warfare, not with our artillery seriously obsolete, thanks to egregious political neglect by both the Congress and the gormless hyper-nationalists who did nothing except talk up a storm when they were out of power, and tried to fiddle with textbooks and organised pogroms when they were in power. We have insufficient MANPADs, insufficient fire-power at platoon and company level to stop an attacker in the mountains, insufficient stores of ammunition, supplies or food due to our sclerotic supply lines.
This is not the time to fight. We know it, the Chinese know it. They are putting on pressure, and, typically, in Chinese fashion, having put on the pressure, and conveyed clearly what the respective inventory is, they took it off. Now it's up to us. We can respond with realism and intelligence, and cut a deal, whatever the deal is, or we can react like a teenager with raging hormones, and try to fight on emotion, instead of fighting with fighting skills, proper supplies, the right equipment and with good leadership.
Why so many of us think it was a victory for India really defeats me.