Firstly, let me state right away that I did not intend for this to become a flame war as I am well aware of how sensitive an issue this can be. This is why I insisted that members keep it healthy and informative else it would sadly become comprised of puns and derailing arguments as is the case with a majority of Indo-Pak topics.
Secondly, I actually have been doing some research independently on this. As I have said before, there is a plethora of information regarding this on the Internet but it is quiet tainted depending on the source as with other Indo-Pak matters. To complement my own fact finding I posted this question here, a Pakistani forum and also at another forum.
Thirdly, in most of the findings which I have made, I come across some re-occurring points and they have only been stressed upon further here. These address the socio-economic and ethno-religious ground realties.
As to the ethno-religious bit, they largely rotate around how Kashmir is geographically partitioned into three localities based on religious affiliation-- Hindu-majority Jammu, Buddhist-majority Ladakh, and the more populous valley with it's overwhelming Muslim population. The majority segments of the regions aside, the religious distribution of people in Indian Kashmir is mixed in all three. Based on this point, Ladakh and Jammu are more orientated towards New Delhi's point of view concerning Kashmir. The Valley region remains the more contentious one.
As to the socio-economic bit, those that have stood in having derived the greatest benefit from Indian rule, and those who are in the higher echelons of the society, seem to be more in favor of association with India-- the ethno-religious elements plays it's part here as well. The same case is made concerning the intelligentsia, the better job-positioned and educated segment of the population. When this is put in context to the Valley alone, the reasoning is not as fluid. Those in the valley hailing from lower-halves of the social order exhibit the lowest pro-India sentiment. This is further complicated by security measures and certain policies which have been placed whom they see as adding to a curtailment of their rights.
The majority of the consensus derived from Kashmiri Internet blogs is that the Valley Muslims associate themselves more closely with neighboring Pakistan due mainly to religious similarity. This is so much so that Pakistan finds mention in each and every debate as do Pakistan's own shortcomings and tribulations. This however does not translate into a Pro-Pakistan sentiment outright. From what I have read thus far, most seek close ties and association with Pakistan rather than seeing themselves as being Pakistani-- i.e close association rather than unity under a common state. There is a Pakistan-unionist sentiment as well but the amount of it's existence is question to open debate. The overriding identity that is most valued in the valley is simply being Kashmiri though. As such, concerning the Valley alone, a view of independence from both entities (Pakistan and India) holds much debate, however, they remain quiet divided on how it is to be arrived at, whether it is even pragmatic, or more importantly how they would see their future once and if it is even achieved. Hence, Kashmiris remain as divided themselves regarding their own position as do others regarding their opinion of themselves.
Lastly, the above is what I have gathered and formulated based on my own reasoning from available Internet sources and pages on this forum. I have not visited India myself let alone Indian Kashmir for that matter. I'm not an authority on the subject and my interest itself is rather recent. The above are some general observations which I have come across. I look forward to comments regarding them.