I do agree with you that Taiwan shold not declare independence and keep the status quo. But I do disagree with you on Taiwanese resolve against military action from the mainland. If for whatever reason, Chen declares independence and CCP attacks, i think Taiwan will fall VERY quickly. It has not had any type of war in the last 40 years. China doesn't have to invade to get Taiwan back on the negotiation table -- those 700 missiles aimed at Tsinchu industrial park would be enough.
There will be guerilla warfare for a long long time, possibly supported by the Americans or Japanese. Taiwan is mountainous. The KMT will probably put out a token fight, but some members of DPP will surely go underground. But I think it's a risk neither Taiwan nor Mainland is willing to take now. Status quo is good, Chen should provoke less (I don't understand why he's doing the provocations, everytime he provokes, he loses more electoral support from Taiwanese). Maybe he feels DPP cannot win the next presidential election.
We are hijacking the thread, indcons won't like that. He wants to continue China and Israel-bashing us. ;)