It's not KMT but a different group. Those who want reunification exist and often hold powerful positions.

China wants more of these people and are actively employing soft power in Taiwan to convert more to their side. I'm not sure what the intended time frame for success is, but China is in this for the long-haul.

Perhaps if things goes China's way, the PRC can strike a deal with the KMT for some sort of local governance, likely along with a name and flag change - or a third party could rise up and supplant KMT. Of course, either situation would kill off the DPP.