Another problem: French Algeria was administered directly as part of the metropole. In my opinion this made things worse rather than better, particularly because the colons often held the balance of power in the rather unstable Fourth Republic. Whenever the Government in Paris indicated it would make compromises with the Algerian natives this colon bloc support was withdrawn and very often the Government would collapse.
Having Algeria administered separately, ie as a proto-dominion, will not solve all the problems. Indeed, if things are not handled carefully there could be a Rhodesia type situation develop. However I'm confident that in the long term it will lead to a negotiated solution where majority rule is implemented and a significant minority of French settlers continue to live there today. It might be too optimistic to hope that this post-independence Algeria would have full parliamentary democracy given Africa's history. But even so, consistent with other post independent African states, so long as the colons stay out of politics under the new regime they will probably be OK.