It has been demonstrated with the Arab uprising that this statement has some merit.
But whatever anger there is, it is concentrated within the Valley. So this doesn't apply to Kashmir in the broadest sense - just a small area within that area.
Drill down further and you have differing demands (independence, secession with Pakistan, etc.) within the Valley itself.
Then you need to define the word free, or 'Azaadi', something that was never clearly translated even during the height of the protests and unrest last summer.
Push further and Kashmir will never achieve statehood for the reasons mentioned above, and the geographical area in question. And if statehood was to be taken to the UN, India's clout will ensure it gets quashed without delay. Secession to Pakistan is a no-goer as India will never allow it, and I'm not seeing Kashmiris screaming for that on a daily basis.
Two options remain:
1) The status quo - an unresolved dispute with no real change going forward lingers on
2) Acceptance of the only logical solution - LoC as the border, greater movement over both sides, with a focus on trade and people-to-people contact
The second option is the only realistic one. If Kayani and the military softens its stance, MMS doesn't dither or drag his heels like he did in 2007, then we can achieve that and open a new chapter in relations between both countries.