What do you guys think, will they be able to come up with a diplomatic solution? Or how do you see this panning out otherwise.
I think Ukraine will eventually fold and grant Russia their key aims: commitments about not joining NATO, and acceptance of the loss of Crimea. If Ukraine can hang on to its EU ambitions, this may work out okay for them. As to the Eastern regions where Russia has been staging a "civil war" I don't think Russia will be granted their aims of independent regions that they can later annex or at least run as puppet states, but they may end up agreeing semi-autonomous regions with Ukraine.
But, really, who knows? Both parties need to get out of this, but whereas Putin is paying in blood he doesn't care about, an economy he doesn't care about, and political credibility (that he cares deeply about); Ukraine is paying in the blood of tens or hundreds of thousands of citizens, millions of refugees (many of whom will never return), massive lost of property and infrastructure, and the total collapse of their economy. I don't see Ukraine waiting this out long enough for Russia to fold completely.