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.. Perhaps half the population of Taiwan believes that Taiwan ought to remain part of China, but without formal reunification until such time that the mainland becomes more supportive of political and economic freedom..

And for reasons of their own, the powers in Beijing were willing to put up with the existence of what to them was a 'breakaway province', as long as Taiwan refrained from attempting to formally declare its independance. Beijing figured time was on its side; why fight an expensive war whose outcome could not be guaranteed? Sooner or later, the time would be right for them to reclaim their own with little risk.

That's the significance here; Beijing cannot stand idle when a part of China declares itself free of Beijing control, forever ... what part of mainland China might next declare?

You're quite right about that. Chen is playing a dangerous game of poker, but he doesn't hold the cards he thinks he does.

And for reasons of their own, the powers in Beijing were willing to put up with the existence of what to them was a 'breakaway province', as long as Taiwan refrained from attempting to formally declare its independance. Beijing figured time was on its side; why fight an expensive war whose outcome could not be guaranteed? Sooner or later, the time would be right for them to reclaim their own with little risk.

Due to the unusual circumstances of the ROC/PRC's civil war, the PRC emerged the de facto winner without completely defeating their opponent. The status quo that rose up around it is certainly akward, but a common understanding rose up around it. An odd stability settled on an otherwise intolerable situation, and all sides have allowed it to continue, more or less unchanged, for over half a century. The war ended in a draw, but as a practical, day-to-day matter, it ended.

What this announcement is doing now is basically restarting the civil war. It will shatter what fragile rationale held the peace, and will challenge the leaders in Beijing to do something.

That's the significance here; Beijing cannot stand idle when a part of China declares itself free of Beijing control, forever ... what part of mainland China might next declare?

As a matter of historical note, once a Chinese dynasty fails to put down a rebellion, that dynasty is not long for this Earth. The revolution can come from any number of sectors. Students. Farmers. Ambitions generals. Perhaps the middle class this time? But once the goverment is shown to be weak, it will fail to inspire fear and loyalty among segments of the people that it desperately needs to keep in line.

It's not a part of the mainland Beijing is worried about getting off the reservation. It's what part of society.

Indeed.