You've probably heard of this many times, but I'll say it again: the pro-TI group is the minority. They were 10 years ago, they still are today. Repeated polls have shown that they account for 25-30% of the population.
Here's something else that you may not be aware of: Chen Shui-bian is not a TI fundamentalist. He is an opportunist. Remember when he was first inaugurated? He proposed "one future China," the opening of "small three links," and proposed the resumption of negotiations between Taipei and Beijing under the "basis" of the 1992 cross-strait talks.
So this is what I am trying to say: there are many people in DPP who are indeed willing to talk to Beijing and have good relations. On that basis, they are even willing to forego the pursuit of TI if necessary. The problem is, Beijing has treated all of DPP as hardcore TI fundamentalists. That is a strategic mistake in Beijing's Taiwan policy: it refused to negotiate with the DPP administration. As a result, Beijing loses its influence to the DPP and its cross-strait policy. Chen Shui-bian and the DPP are then forced to go back to their base -- the TI fundamentalists -- in order to stay in power. In the end, it results in a downward spiral. The fundamentalists demand more TI measures, and Chen are forced to appease them by adopting these measures.
At this moment, however, I think it is not too late to rectify the mistakes. I think Beijing should talk to Chen from a more moderate position. Instead of demanding Chen to accept the "one China" principle, how about demanding Chen to promise to forego the pursuit of TI, in exchange for a minister-level negotiation between Taipei and Beijing? Chen will do it. He will jump at any opportunity to form better relations with the mainland. In fact, Chen's administration had said so repeatedly for the past several years. Too bad Beijing didn't seem to have caught the message.
I hope that would at least turn the TI tide back somewhat. In the long run, I think the mainland's democratization is the only solution. In the short run, however, I think there are many steps that Beijing can take to better cross-strait relations. Understanding the DPP and the fact that many of them are realists and even opportunists, would hopefully help Beijing shape a more effective Taiwan strategy. Eliminating Taiwan's international visibility is entirely unhelpful. It will only push the Taiwanese to the other end. Reducing the pro-green camp's influence by placating their leaders (divide and conquer) is, in my opinion, a much better strategy.
That will bring peace and stability to both sides of the Taiwan strait. It will reduce tensions, alleviate the separatism, and foster better relations between Taipei and Beijing. For the PRC to cling onto cold-war ideology and the "zero-sum" mentality is most saddening. Many examples of the past (Germany, Korea) have only shown that, when you give someone else a chance to prosper, they will return the favor as well. The attempt to eliminate Taiwan's international standing will only result in the Taiwanese' desire to drift further and further away from "China." Sadly, not very many were able to comprehend that.