It is interesting what you say here Thor as it really does sum up the seeming "hand" HHDL is playing. I agree that the Chinese Government on the whole may not go with the "seek solace in Buddhism" aspect as they tend to go against whatever HHDL says but in merely uttering the prospect, the idea or seed is planted in populace Chinese.
The Chinese Government may put the ground rules but inevitably it is the billions of citizens that will eventually decide, democracy or not. Even if the citizens do not think for themselves and act like lemmings, the other "choice" they would have would be to propitiate Dorje Shugden as this practice "harms" HHDL.
So either way one looks at it, it is a win win situation and the more HHDL "pushes" Buddhism to the forefront, the more lemmings will fly off the the cliff into Dorje Shugden's arms!
Well, here are 2 things, the first of course being Dorje Shugden's practice propitiated and promoted by China, and the second thing here is China actually promoting Buddhism in general outwardly and officially, but not other religions, not even the native ones such as confucianism and taoism, but Buddhism. These 2 are separate, but one thing for sure is they are both triggered by the ban.
And the result of this is that millions of Chinese have a chance to heal and have a chance to pursue spirituality, although government sanctioned, but they still get to pursue it and reap the benefits which they sorely need. And even so traditional Chinese Buddhism may be quite daunting to some, so they would be naturally interested in Tibetan Buddhism and that's where Dorje Shugden steps in.
So no matter how we want to see it, the Dalai Lama's action of banning Dorje Shugden served more or less as a trigger for this to happen, although it did take many years before China actually trusted religion again and they were actually able to take religion seriously and see the importance of having religion in China. With that said, it is never too late for them to start.
No matter what is being done, or who is hurt, in the long run an enlightened being can only bring benefit if we check their actions and what happens over time, then we can validate the actions of that enlightened being. Short term benefit and comfort is useless if at the end of the day we are going to lose that and we suffer even more over time. Therefore, I trust the Dalai Lama's decision, even if it is painful to accept.