BJP should be firm and stick to its demand about Power transfer.
If JD(S) is trying to bank on its good performance in the recent ULB polls, BJP too has done well in the polls, and there is no reason to back off in its tussle with JD(S).
BJP should know well that JD(S) is not in a situation to partner with Congress - as Congress has already been let down earlier, and partnering with JD(S) at this stage will further hamper its image. In such a situation, it will be very beneficial to BJP, as it will gain significant votes as it will be termed as the "underdog".
So, BJP should stick to its position and if JD(S) does not make the way for BJP, BJP should immediately bring down the Government. In case, BJP does not do so, it will be perceived as a weak party, and lacking confidence. People will feel that if it cant fight the JD(S)- how can it be depended upon to manage the state even at a later date.
Even in the situation of JD(S) giving up its position - the coalition is certainly not going to last more than 6 months, as JD(S) will try to bring down in some way or the other (be it the issue of terming BJP as a religious party, or NICE Road, or for any other reason). BJP should be prepared to fight the elections now, or in the next six months.