Excellent analysis of the current situation with one minor addition. It is not THE WEST, which is pursuing these strategies. It is entirely the responsibiliy of the U.S. administration and it's ,military leaders. They are unwilling to compromise for the sake of their war games options. The option with a neutral, unified, demilitarized option is the only plausible one for longterm peace.  A similar agreement (without neutality though) has re-united Germany. Germany also has made it very clear, that it will not support any military operation.  

The flaw of a demilitarized option for Korea is that the U.S. administration broke it's promise to Russia after German unifaction to never extend NATO beyond a unified eastern German border. Now NATO troops stand at the Russian border. 

In a similar manner the Syria, Libyan, Irag, Georgia wars could have been avoided had the U.S. talked to Russia and offered them military bases in the Medittearean Sea instead of trying to strangle Russia.