I accept with all the points above,since even without the diplomatic ties the Taiwanese have invested heavily in semiconductor sector in our country.
But the last point of yours gave me a heart attack!! We should help arming Taiwan and Vietnam with Nukes?? No way man, last thing we want is sanctions from the UN/US/EU, etc.. If we start arming them, then China will consider this as an act of war, and will use paki assets in kashmir and Myanmar and send its Naval forces in the Indian ocean region and try to attack us!!! Its best to keep quiet in that regard.
Let's see what China will do to us if we make a move on Taiwan:-
1. Arm Pakistan with tactical & strategic weapons
2. Diplomatic support for Pakistan in UN
3. Make a ring of pearls around us
4. Support for NE, maoist & other insurgent groups
5. Industrial espionage
6. Cyber warfare
7 . Salami slice us
8. Real time intel sharing with Pakistan
9. Prop us anti India sentiments/regimes in other countries especially SAARC ones
10. Building dams in Tibet
Oops, i forgot, they have been doing this since very many years agnostic of India's position on Taiwan. This has, is & will be their policy.
We need to chart our policies in such a way that cost to China for the execution of their polices is increased.