The current status quo depends on the PRC pretending that Taiwan is ruled by a regional government, while the Taiwanese government has restricted its actual scope to Taiwan. To this effect, in 1991 Taiwan has added articles to its constitution to account for the fact that its government has only control over the "Taiwan Area".
The actual policy of the Taiwanese government depends on who is in charge at the moment. The Pan-Blue Coalition favors reunification, while the Pan-Green Coalition tries to assert a separate Taiwanese national identity.
The claim on the rest of China is still there, but only because it cannot be dropped in practice. The PRC would interpret dropping the claim on the rest of China as a declaration of Secession and Independence, which would have diplomatic and possibly military consequences.
The actual policy of the Taiwanese government depends on who is in charge at the moment. The Pan-Blue Coalition favors reunification, while the Pan-Green Coalition tries to assert a separate Taiwanese national identity.
The claim on the rest of China is still there, but only because it cannot be dropped in practice. The PRC would interpret dropping the claim on the rest of China as a declaration of Secession and Independence, which would have diplomatic and possibly military consequences.