The Kashmiri independence movement as we know it now really kicked off in the late 80's. Also in "65 Pakistan launched an operation to free Kashmir but the Kashmiris told the Indian Army and we suffered heavy losses. In fact, if you ask those men in the SSG that served in that operation they will tell you the hell with Kashmir and Kashmiris. They lost several of their friends in that operation so their feelings are strong because of that fact.
If the Kashmiris wanted independence then y they are having a freedom movement since the Indian occupation. And do u think the Kasmiris have sacrificed thousands of ppl blood just to get independent ?? Infact from the start of issue, the main issue was to join India or Pak. The Dogra accessed kashmir to India against teh wishes of ppl and they stood against the occupation forces uptil now. The independece was never an option until last decade when big powers joined in to give a 3rd option to end the crisis (which will ofcourse suit them to have a presence & control here).
And how can u claim that kasmiris want independence ?? there was no referendum or plebscite since last 64 years which can support ur argument. Bt the fact is kashmiris stood against accession to India and to be with Pak during the long freedom movement. if one day a fair plebscite is held, u will know the majority will choose pak inshallah. (the elections by India in kashmir have been always boycotted by kashmiri ppl and rejected by international bodies)
also, ppl easily talk abt division of Kashmir without thinking that the kashmiris on both sides of LOC have blood-relations and cannot be separated in any way. The acceptance of division by pak is not according to the wishes of kashmiris bt due to current situation that India has occupied a lare part of kashmir. and this division is considered an option by the weak pak leaders as they cnt take kashmir with force or by dialogue from India. Even the UN resolutions can do nothing against India, the fact that UN is only a forum of big powers where actions are only done against weak nations. for example, east Timor is separated from Indonesia, South-Sudan from Sudan etc bt there is no action against India for Kashmir issue despite UN resoltions. Bt the same UN for one resolution starts action against Libya, Iran, Iraq & Afghanistan, North-korea etc.
If the Kashmiris had a real choice they would choose independence over India and Pakistan. That is why they are in a war against India!
Also I have been to Kashmir and I can tell you any relations that existed 60 years ago are not as strong as they were in the past. Kashmir has integrated into Pakistan fairly well and when you travel in Kashmir it feels like you are in any other town, village, or city in Pakistan. We need to have reasonable expectations and any agreement on Kashmir will be based on give and take by both sides. The only other option is the status quo which hurts both countries right now economically.