I also found the Annan plan unsatisfying and I would not have approved of it. Because it created a federation of two nations, with many separated and segregated zones. It would have established a limited right to return between the territories of the two communities. It would also have allowed both Greece and Turkey to maintain a permanent military presence on the island, albeit with large, phased reductions in troop numbers.
For me it is unacceptable for either Greece or Turkey, or even Britain-but that is another story, to have military bases in another EU state. And if we are talking about re-unification, then there can be no "limited return" between the territories. The plan obviously satisfied the Turkish demands for "protection" from the Greeks. And that is why it failed to convince the Greek Cypriot side.
The Greek Cypriot idea of unification is for things go back to where they were before. Perhaps a thing rather impossible after so many decades. Some compromise must come into place, if the Greek Cypriots really want to see their island as one again. They have to accept that they must give the Turkish Cypriots more guarantees of security and a greater political say and influence in the island's affairs.
But the plan appeared to them as a red flag to a bull, because it accepted the existence of a Turkish Cypriot "state," a thing that they deny. They see the territory of Northern Cyprus as a Cypriot one, occupied by a foreign military presence. Not that they ignore the existence of the Turkish Cypriots, rather they do not want to justify the existence of the Turkish settlers and the military personnel in their territory. Something that I totally agree with.
Accepting their existence, is like endorsing what happened and no Cypriot ever will do so. So the Annan plan, though having some very excellent points it failed because it ignored one major factor: the human emotions.
Should we ever try again to re-unite the island, both sides must compromise and move on from issues that brought Cyprus where it is now, issues of the past. If they start thinking as Cypriots and focus on what unites them rather what it divides them, plus if Turkey, Greece, Britain and the international community stop bringing their own interests on the table, then perhaps the dream of generations might come true.