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I don't believe they have ever advocated a separate state.

From the above article:

Taiwan's president, Chen Shui-bian, has voiced support for a referendum on formal independence from China.

This seems to contradict your belief about Taiwanese wishes for Independence.

Let's have that referendum, and see what the Taiwanese think. Do people have a right to self-determination or not?

To Beijing, the emporer is still to be obeyed promptly, flawlessly and always. Power is still king. Without it, there will be chaos--witness Tienanmen--to their minds. Even people against the Communist leadership feel strongly that there must be strong, powerful leadership--even ruthless leadership to a point.

Yes, Taiwan people would be delighted to be free and not have to worry a flip about Beijing.

Most of them would probably prefer to have some sort of loose connection as part of the greater Chinese nation ethnically--but without losing any of their independence.

But this would show the lie to Beijing's stance that the people of Taiwan are yearning, reaching, hungering for reunification--which, of course, is a huge lie.

AND IT WOULD SLAP BEIJING'S PRIDE IN THE FACE VERY HUMILIATINGLY.