This seems like the most sensible solution. Refusing to recognize the will of the people serves nobody and will hurt Ukraine the most. The West is using Ukraine as a stick to hit Russia with. There is no way you want "stability" or want the best for Ukraine by implementing anti-Russian laws in a country were as many as 30% of its population is Russian, and especially in the Eastern parts of Ukraine where so many Russian people live. Banning a language which third of your country speaks? How stupid is that?If the people in Eastern Ukraine feel Russian and want to be Russian, then they should be given the choice.
Also, if the Western side feels closer to the West and want to join NATO, they should also be allowed.
Perhaps that is the compromise that can happen. To split the country into East and West Ukraine. Yes there will be new borders and some land will have to be ceded, but better than having the whole country subjugated to war.
If Putin limits his advance to the Eastern half of Ukraine then I don't see these areas rebelling against him or fighting against joining Russia, and betting on a popular resistance (armed or not) seems futile. Situation will be unclear though if he advances further into the Western parts which could backfire.