New government credibility is at risk for sure in present conflict with novorussian rebels.
If they could not recapture Donetzk and Luhansk then more region uprising could follow.
The peaceful solution is well-known: federalization. It was first suggested by some on West then rejected by Ukraine gov and most US and EU officials.
Ukraine is synthetic state, borders were changing in last 100 years a lot. Donetzk, Luhansk and many other regions were assigned to Ukraine SSR by Lenin and Stalin as deals with local leaders and warlords to finish Civil War of 1917-1922 and finalize Soviet Union core structure. This way a lot of russians became part of new Ukraine. Also don't forget about significant jewish population of Ukraine at that time.
Now old Ukraine (west) driven by nationalism trying to push ukrainization further to part of population who identify themselves as russians. Biggest problem here is ukranian nationalists usage of Simon Bandera as their symbol. Bandera is recognized as nazi collaborator by most of EU and Russia. It adds fuel to the conflict: russians see ukraine gov tropps as nazi because many of Ukraine gov are members of Svoboda, party with cult of Bandera. US/EU support of such government and the way how it was installed give russians all reasons to think that 'nazi are coming'.
As for value of Donetzk and Luhansk - Ukraine GDP per capita is at the level of African countries, what kind of value you expect? Old industries were only marginally profitable thanks for cheap gas from Russia (not cheap anymore). Whole country worth is in the future development. In this respect both west and east of Ukraine have the same chances.
Ukraine can stop all this calamities by simple acknowledgement of Crimea admission to Russia. Russia would rather launch nuclear war than give Crimea back. In exchange Russia would denonce rebels-driven war for Novorossia - noone in Russian gov is actually serious about Donbass and eastern Ukraine.
It was always about Crimea.