Settlements and water
Depending on how its implemented, this is not too bad an idea - a matter of fact, its a pretty good one, but
Settlements: Call me niave, but there are Arabs living in Israel, and I don't see any problems with Jews living in Palestine. But corridors won't work - perhaps joint Israeli-Palestinian-UN police forces could be set up to both to guarantee safety as well as to prevent attacks by the settlers.
Water: Both sides are going to have to fairly apportion the water, and sewage treatment plants with 100% treatment and purification (for agricultural use) are going to have to be built.
The bottom line is Sharon seems opposed, but...
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