I fully agree with the proposed solution, provided we are talking about an 82:18 split or thereabouts, on the basis of the pre-1974 population (settlers cannot count) and on the lawful ownership split of the land, and provided the coastline will be split on the same ratio.
The ideal solution would of course be a full re-unification into a single state, where everyone is allowed to go back to their homes and have the 1-person 1-vote principle, guaranteed by EU law and army. However, as the 18% TC minority is (ironically) not prepared to "become" a minority under any circumstances, the only solution that can realistically be accepted by both sides is the one proposed above.
TCs cannot have their cake and eat it. Either they want re-unification or they do not. As Piratis explained above, an Annan-plan-type solution (and in my view any BBF solution involving political equality) gives the best of both worlds to the TCs and the worst of both worlds to the GCs, hence it will NEVER be accepted at a referendum.
A clean partition with fair land sharing (i.e. 82:18 ) is infinitely better for GC than a BBF and I believe that over 90% of GCs would vote for it at a referendum. Those very few GCs who would insist on returning to their properties in the TC state should be able to do so and so should the TC who would want to live in the GC state. Given the full sovereignty of the two states and high concentration of GC and TC respectively within them, it should not be a problem to have a small minority from the other community. The land % split should be adjusted to reflect the number of returnees - although I think the net effect will probably be around 82:18.
I believe that the Republic of Cyprus should become more pro-active and immediately state to the world that it is prepared to accept EITHER of the 2 solutions mentioned above (i.e. full, true re-unification in a single state or clean 82:18 partition). This would remove all pressure from the various Turkish supporters. It should also state that unless Turkey accepts one of the two solutions in the near future, its EU accession will be frozen because of the illegal military occupation of 37% of an EU member state.