Okay, the pan-greens have the “nationalism” issue nailed down. People who feel nationalistic, vote for them. The KMT is now wondering whether to imitate them, which seems ridiculous, or keep on clinging to their original (and unpopular) view on nationalism.
I think though, there is a whole 'nother major category of political party possible here–namely a political party whose appeal is economic rather than patriotic. The number of people here who love money, could rival the number who love Taiwan!
Imagine a group of filthy rich people, coming together and starting an explicitly pro-business political party. The economy would always be the Number One issue for them. Corollaries would include low taxes, less government, and while seeking as much autonomy as Taiwan can manage (cheaper not to pay taxes, better for business not to have China interfering with it), they would not be ideologically committed to either independence or unification. The easiest way to sell it would be “status quo forever, or failing that, the best we can get”, and do their best to not do anything at all that touches the issue.
I think this would sell. I also think that it would be difficult for the pan-blues to occupy this political niche, as much as they might like to. The main problem is that they give the impression right now of being incompetent, which is hardly persuasive as a platform for a business-oriented party.