I wonder if there's any possibility that the CPC will give the KMT some token power on the mainland. Like let KMT politicians run for office in small towns or districts where there are already Taiwanese busineses. If I'm not mistaken, the dream of the KMT is to return to some form of power on the mainland. Some sort of CPC-KMT power sharing scheme should not be out of the question. According to Peoples Daily, China technically has small minor parties outside the CPC.
The elections in small towns and villages that are held now do not necessarily have candidates that run for a party. Rather, it is who is more capable of delivering a fair and prosperous village to the people. They couldn't care less if the candidate was KMT or CCP.
Yes, China does technically have some KMT parties (Yes, it wasn't a typo. I mentioned "some"). According to my Chinese encyclopedia (which I haven't opened in 1 or 2 years, but I still remember a few things), there are about 4-5 different KMT parties and 6-7 CCP parties. I also believe that there are KMT members in the People's Congress, not sure though.
I would rather prefer the KMT and CCP to run the country together as well. The KMT has an important place in Chinese history and it deserves to have some sort of power.
On the other hand, given the political situation at present, it is very hard to do any major changes without someone trying to sabotage it, whether for political beliefs or personal gain.
Now, onto my personal opinion for the KMT,
The KMT was a symbol of hope change, freedom, and national pride back in Dr.Sun's days. (Note that this is my personal opinion) I also believed in everything KMT. The 青天白日旗 (Blue sky white sun flag), the 4 statements, everything.
Then Chiang Kai-Shek (Jiang Jie Shi) came along and ruined everything. Once a proud revolutionary force and working for the people has been corrupted. Chiang wanted power, by whatever means, enough said. He sacrificed millions of Chinese lives just so he can fight his fellow countrymen and kill millions of other Chinese lives. He allowed the great hope of the people to be corrupted so much that it was no better than the warlords of that era. The ideals of Dr. Sun have been forgotten.
On Taiwan: The only thing I can say about them now is that they still consider themselves Chinese. Good for them.
On China: I remain skeptical about the reasons for their existence. They're there so that the CCP can tell the people "Look, China is democratic, because we have other parties. It is the will of the people that the CCP is in power." (My opinion)
Sadly, the CCP won the Civil War, and changed the course of histroy to go down a different road. We have yet to see where that road will lead mankind, because now that China has risen, it will have an affect on the whole world and its history.
I personally saw your last 2 paragraphs as pointless. There are too many "what if's" in history to tell. No offense intended.