It is sad to see the stalemate in the peace process and that the Maoists have to take the onus for sticking the sore thumb. The government has been more than accommodating, but there are certain things a state can't breach such as the security and stability of a nation.
To place the state army and the rebel army in the same footing would be catastrophic. An institution that has been around for almost two and half centuries can't be terminated just to appease the rebels, it is the people who should decide by the means of adult franchise.
All peace loving Nepalis would like to appeal to the Maoists to be more serious about a peaceful settlement. And if the Maoists create any city-centric unrest, such an attempt will be akin to treachery and should be taken as an act of war.