But more importantly, you dodged the military strategic significance of Taiwan. Telling China to give up Taiwan is like asking China to give cut off its lifeline.
At the end of the day, your point boils down to that China ought not to think that way, for reasons that you believe are the only legitimate reasons. But that is useless: Chinese do view things that way, and if foreign forces pressure China to let Taiwan go, then they will fight to the end.
It seems to me that you are saying that a contemporary political position (that Taiwan should be ruled by the same government as mainland China) is in fact a "core value". Unity can be a value, but the political position that the island of Taiwan is an integral part of China, and China can't be unified without it, is not. That's the position which is encouraged by propaganda and government rhetoric, and mirrors similar positions with regards to, for example, Tibet.
Were this danger to disappear then I foresee much greater chances of Taiwan emerging as a independent state, probably as one that is aligned with PRC in the same manner Canada is to the US.
Say what?
Can you give some background (and, especially, evidence or documentation) for this? Because that sounds completely insane.
China obviously doesn't want the matter resolved peacefully, if at all, because they use this conflict for internal control.
I don't have an opinion on that. Just want to point out that out of the previous 2500 years, China has been unified for only 500 years, and 300 of those 500 years was spent under the yoke of a foreign invader (the Mongols).
This is not true, Mongol rule only lasted for about 100 years.
Han dynasty lasted 400 years. Tang about 300 years, Ming and Qing together lasted about 550 years. All of that adds to about 1250 years of unified times. That did not count Qin or Sui or Northern Song, which are unified that just happened to be short lived.
I don't know where you got your numbers.