I don't mind the 'virgin birth' approach. I share the view that the present RoC is not the real RoC anyway (whoever's fault that is, it makes no difference), so whether it's continued or shot in the head makes little difference to me.
However, seeing as how this 'virgin birth' approach is an attempt to walk through a minefield, I think one should also take into account the 'realities' of the whole thing.
The RoC (real or not) enjoys international recognition, and the TRNC does not (remember that the TRNC was formed against the will of the RoC, so it is at least unfair to demand of the RoC to accept it as a legal entity). In effect, the 'virgin birth' process asks of GCs to give up this recognition status (by dissolving the RoC - once again, real or not), while the TRNC not only is not asked to sacrifice anything of the kind, but, what's more, is effectively upgraded to recognized status. It is more of a moral, rather than a legal, predicament that needs to be addressed and balanced.
Therefore, in my view, GCs should be treated in that very manner: like they are giving something up; so, they should be compensated in another area (as the 'virgin birth' approach is a necessary evil).
Maybe one way out of it is to insert the 'virgin birth' clause in the proposed solution, but at the same time maintain symbols of the RoC, like the flag, the name (as in 'Federal Republic of Cyprus' - which, by the way, incorporates both elements of a 'new beginning' by means of the word federal, and continuation by means of the rest of the name), etc.
These are my thoughts on the matter. I hope they didn't come out wrong.