The best solution one can hope for the people of Kashmir is the withdrawal of armed forces and some more autonomy.
But there is already enough autonomy in the form of article 370 and some other cosmetic measures, like calling the governor sadr-e riyasat. In fact, article 370 is responsible for preserving the Kashmiri way of life and culture. Else Kashmiris would have been overtaken by enterprising people like Marwaris and Punjabis in their own state. (Have a look at Pakistan, by the way- totally dominated by Punjabis). Yet Kashmiris complain that India hasn't done enough to "win their hearts".
However, this also means that along with the Kashmiri way of life the stunted economy is also preserved and that in turn leads to more frustations. Which then is vented out against the state itself and its representative security forces. People suffer, then some people and some other vested interests make an issue out that, the janta (awaam) vents even more frustration on the state and consequently, even more people suffer. Thus it becomes a vicious cycle.
And police excesses happen everywhere in India. Ever heard of Dalsinghsarai in Bihar? In '90s, ELEVEN students died because of police firing, and I can't even find it on Internet. But have a look at THIS link, anyway.
http://www.cscsarchive.org:8081/MediaArchive/liberty.nsf/(docid)/65DD3DD45C07BB77E5256AD30013065E?OpenDocument
But let's leave that aside. For Kashmir, free movement of people seems one of the major solutions. Of course, this would mean diluting the Kashmiri conservation but then that's a challenge all the traditional societies are facing. Once the people get preoccupied then the armed forces can also afford to take rest and gradually retreat to their barracks. However, given the blatant communalism of the valley people and the general propensity towards conspiracy theories and rumour mongering, this also looks out of question.
So the people of the state should press for 'Azaadi from the forces'. If you give a movement a more meaningful direction, then it becomes that much more valid and effective. Congregating after the Friday prayers, putting women and children on the front, repeatedly provoking armed security personnel and then getting angry that they opened fire- this isn't a great template for protests. You are only harming yourself and then blaming it on others.
And no matter who rules, institutions like police and the army will always be there, protecting those in power. People all over the world already know this.
One final thing- no other regime in the world provides as much freedom as India does. You can follow your own religion, speak your own language, live according to your way of life, have your own film industry and film stars, and to top it all, still keep protesting. Try that in any other country- I bet it cannot be done even under a self rule!
P.S. All said and expressed, one cannot help but feel sympathy for the people of Kashmir and their anguish. Stupid and corrupt bureaucracy and leadership has bungled up cases like the Shopian tragedy. For people who have been under siege for nearly 2 decades, discontent builds up like steam in a pressure cooker.