The Dalai Lama is the spiritual leader of Tibet. The Middle Way thought comes from his Buddhist tradition. Yes, it is good as far as it goes, as he does not want to lead a violent rebellion. He is wise in cautioning his people to do no violence and keep their humanity; in any event violence would be very hard to win against the Chinese.
Yes, the Dalai Lama's middle way is the best approach for Tibet, because it is the system that provides for peace. The Dalai Lama has built a strong coalition and has a great deal of followers. He is well-respected and the way he has chosen should be continued. He has been an effective leader and this approach has been successful.