Amnesty in Iraq?

This story is getting a lot of play today: reports of a possible amnesty program for insurgents in Iraq. In most reports that have come my way, it seems to play as a desperate move that will involve open negotiation with terrorists. This report strikes me as a bit more balanced and credible: the reported plan is an attempt to divide the terrorists, aimed at getting Sunni sympathizers to switch loyalties, and negotiation with terrorists is being ruled out.