I see the offer made by Ukraine quite differently. A neutral Ukraine free from external Russian interference would be, were it implementable, a reasonable way out*. But how would Ukraine be guaranteed security? Russia can't be trusted so long as Putin, or any other Russian autocrat, is in power. Ukraine can not agree to disarm without a guarantee of security from the West, and that is not forthcoming. Russia will insist on a disarmed Ukraine -- an impossibility under the circumstances. And then there is the detail of what happens in Crimea and the Donbass region.
Nevertheless the heart of the Ukraine proposal, a neutral Ukraine, is a reasonable, and by itself a thoroughly practical offer. Had Putin been earlier surrounded by level headed independent thinkers they might have been capable of talking him into acceptance of Ukraine as neutral, independent State. Still it's doubtful, because an independent Ukraine requires independence from Russia.
Now, fate has taken a hand. Putin appears incapable of believing in Ukraine as anything other than an integral part of mother Russia; thus to him a post 2014 modern independent State is unthinkable. This "oneness" of Russia and Ukraine is so ingrained, he is blind to what Ukrainians and much of the World see. The only exit visible to him now is through the bizarrely illogical laying waste to Ukraine and, as a consequence, the Russian Army.
The alternative to such amoral devastation must come from the Russian people themselves. Sadly, Putin may have already locked the exit door.. If so, than Ukraine is fucked, Putin is fucked, the Russian Army is fucked, and the Russian people, too, are fucked. Oh Ukraine and the Russian People will survive, but they will still be fucked. Putin, however, is unlikely to survive in any way other than in the nightmares of our collective memories. Putin is not just fucked, he's finished.
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*If you had the time to view U. Chicago's, political scientist Mearsheimer's, 2015, detailed You Tube presentation that I posted in its own thread, you will recognize that had a Neutral Ukraine been established back in 2014, the current war might have been prevented. I have my doubts however. From what I have written above, I don't believe the real issue is as simple as one more NATO nation on Russia's border being the straw that broke the camels back. From what Putin has written and told us, it is more likely he suffers an ideological myopia. He seems driven to take Ukraine back into the Arms of Mother Russia, or die trying. (Let's hope it is the latter. He wouldn't be the first to die at the hands of a recalcitrant ideology flung into truth's face.)