Niazi's articles perfectly describe why the GCs rejected the Annan plan and will never accept a solution that carries the seed of permament division in its core.
The Turkish side has never been honest when they talked about federation. In a federal system the federal state devolves powers to the constituent states and not the other way around. I guess you should ask yourself the question "what makes Turkey to insists so much on the constituent states being the founders of the new state?"
The GCs are called to take a very painful decision here (federation and probable loss of some of their human rights through the new constitution) and believe me they are prepared to make the necessary steps. However, asking for something that will allow you to have the legal basis to split the new state and hand the north to Turkey, is way too much to ask.