So in essence, both sides see no value in diplomacy right now. That probably means we’re in for a cycle of escalations until the ground reality shifts enough for one or both sides to reassess their position
No, there is no value in diplomacy. The only "diplomacy " needed on both sides via DGMOs is a verbal ceasefire to "pause" to re-stock, and re-calibrate weapons on a lessons learned basis for the "next round " . There will be cycle of escalation inevitably into the use of nuclear weapons, because Pakistan cannot afford either a sustained conflict which it will lose, or match India toe-to-toe in all domains of the conflict particularly the naval domain.
Indian Defence analysts have predicted a rapid escalation into the nuclear domain, in the next round despite intense support from China hoping to sustain Pakistan's conventional capabilities on par with India.
A nuclear escalation can only be stopped if China directly intervenes either by opening a new front in the North East or
entering the war directly alongside Pakistan on the Indian Pakistani border . This is highly unlikely.
A more likely scenario is that if Pakistan suffers significant damage, and resorts to nuclear weapons, China may allow the "sacrifice" of Pakistan, to attack a weakened distracted India and annex the territories it wants in India's North East ( Arunachal),
China very much wants one QUAD member out of the way to free its South Western front from threats and concentrate on Taiwan and the South China sea, If Pakistan has to be sacrificed to weaken India then that option is on the table.
Pakistan's diplomacy is also conditional to its obligations towards its ally China and it can't make a separate truce with India without taking China into consideration
The best shot at a negotiated settlement was probably when Congress was in power and India was still kind of struggling economically.
Disagree.
No Congress Prime Minister since Nehru in 1948 has EVER visited Pakistan for face to face negotiations. Rajeev Gandhi met Benazir Bhutto very briefly in a "Hi Five" moment, but that was all.
Indira Gandhi snapped diplomatic relations with Pakistan in 1971 and despite the Simla summit and agreement in 1972 never restored diplomatic relations, telecommunications, postal, transit, overflight, or sporting links with Pakistan.
The push for diplomatic relations with Pakistan ironically came from the old RSS guard long since dearly departed of the Vajpayee, Jaswant Singh Advani era .
<<Part of the reason BJP gained ground is because Congress just couldn’t sort out the Pakistan mess over decades.>>
So what Pakistan mess did the BJP government's sort out? Kargil, Uri, Phulwama Pahalgam ?
After 1971 the Congress governments held the initiative for two and half decades when on two occasions Pakistan was in mortal danger: 1984 (Operation Blue Star) and 1987 ( Operation Brasstacks)