It explains why Egypt has participated with the siege amongst other things. The main question is Palestinian Unification. The Israeli policy has been to split the Palestinians. This makes the Israeli position stronger, e.g. no need for territorial concessions for a contiguous Palestinian state connecting Gaza to WB for just one item. Israel wishes to be rewarded for its agression and siege toward Gaza by having it's objective handed to them without cost. Even though they have US support it is not likely the goal will be obtained. The astute observer will have noted Turkey's push for Palestinian Unification as an important item in their newly found role. The crude manner in which the "proposal" (attributed to Katz) was floated likely indicates desparation, an indication of the house of cards about to fall apart.
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from the article: Egypt: Israel wants to 'dump' Gaza on us