Kikapu,
The problem is that Cypriots think that they are the only people on earth to have had a civil war. The events of 1963 are by any definition a civil war. The United States had a civil war in the 1860s with casualty numbers that would make ours seem insignificant by cmparison. Same goes for Spain in the 1930s, Britain in the 16th century, but no sir! Ours was THE civil war of all time, not to be outdone by anybody elses!
Cypriots from both sides cling to the insults of times past, although since coming to this forum and sice visiting Cyprus recently, the first time in 25 years, I discern a level of political maturity in the Greek side that is still lacking in the north. Union with Greece is not a topic in Greek or Greek Cypriot life, but very much a hot topic among Turkish Cypriots, judging by the talk in this forum. The main concern in the south is viability of any solution because no one wants a repeat of 1963. Looking a the overall picture, as a visitor this time, it seems the the south has fewer national issues pending in their collective conscious, and that perhaps is the reason that there has been no mass "Grecofication" in the south with changes in place names and the like. They even retain the Turkish street names and signs and all traffic signs are still in three languages- Greek Turkish English.
In the north all signs it had once been inhabited by Greeks have been relentlessly obliterated. Even tourist guides when referring to obviously Greek elements, like the ancient city of Salamis do not mention the word "Greek" once. And I really love the one about the Karpasia donkeys: "after the peace operation of 1974 many donkeys in Karpas found themselves without owners", that is a classic!!!! This type of compulsive assertion of a national identity makes the north look like it is in denial, it just does not feel healthy.
From this and other evidence it is more likely that a solution along the lines you prospose would be acceptable in the south rather than the north. The north has many issues to resolve within itself before it can thnk of the details of a fairly complex federal plan like the one you are proposing. I must say tht your plan is a lot more rational than mr Annan's. Llike I told you before, what is missing is provision for us unfortunate bastards who live abroad and need incentives to return, and for the political equality of the other communities of the island that Annan treated like garbage. And finally the foreign armies and bases that are the root of this problem must be kicked out. If we could a figure a way to do all that then we are talking.