What I mean by defunct is that the UN is not demanding of Turkey or whichever other country to remove its troops now. This was the case in the year or so after the 1974 invasion. But, the UN is not demanding that any troops leave Cyprus before a comprehensive settlement, as you say. In fact, the UN believes that Turkish and other troops will leave only with a comprehesive settlement, and it is always the resolutions relating to a comprehensive settlement based on a bizonal, bicommunal federation that the UN emphasises. In fact, yesterday's Security Council resolution on UNFICYP (which the UN reminded us has been there for at least 40 years, hence as far as the UN is concerned the "Cyprus problem" long predates 1974) reiterated that the most important resolution passed is that relating to the bizonal, bicommunal federation.
Indeed, the only way forward is negotiations on the basis of the Annan Plan (which is effectively all the plans put forward by the UN in the past 30 years). But, I can't see that happening in the present political climate for many years to come.
With regards demilitarisation, very little is said in the other day's resolution. The resolution that is emphasised is the one from 1999 (#1251).
"Reaffirms all its relevant resolutions on Cyprus, in particular resolution
1251 (1999) of 29 June 1999"
Here are some excerpts from it:
"Calling once more upon all States to respect the sovereignty, independence and territorial integrity of the Republic of Cyprus, and requesting them, along with the parties concerned, to refrain from any action which might prejudice that sovereignty, independence and territorial integrity, as well as from any attempt at partition of the island or its unification with any other country"
Which is almost a call for Turkey to remove her troops. Although, specifically regarding demilitarisation the resolution states:
"Calls upon all concerned to commit themselves to a reduction in
defence spending, a reduction in the number of foreign troops in the Republic of Cyprus, and a staged process aimed at limiting and then substantially reducing the level of all troops and armaments in the Republic of Cyprus as a first step towards the withdrawal of non-Cypriot forces as described in the set of ideas (S/24472, annex), to help restore confidence between the sides, stresses the importance of eventual demilitarization of the Republic of Cyprus as an objective in the context of an overall comprehensive settlement, welcomes in this context any steps either side may take to reduce armaments and troops, and encourages the Secretary-General to continue to promote efforts in this
direction;"
Which backs up your argument to a certain extent although makes it clear that it regards substantial reductions of all troops in Cyprus as a first step prior to a comprehensive settlement. In other words substantial demilitarisation prior to a comprehensive settlement is what the UN wants.