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You did read that the position put forward was to join a customs union with the EU, right? And accept the necessary concessions for such a thing (four freedoms + have shared institutions)? Which presumably meant there would be no need for a custom's border. Which would, as far as I can tell, go a long way to solving the NI question?
I'm not saying this is the best option (far from it), but I don't see it as a 'cake and eat it' position. It's giving in to EU requirements to be a member in everything but name. Or worse, everything but name and right to have a say.