I see where you're coming from, and thanking whatever god you believe in that it's not the fatuous, puritanical stance of righteous outrage I was expecting (not from you specifically, but from posters in general), but the only thing that makes this a bad idea is the ignorance, fear and prejudice born thereof of the general population. To me, that's not a good enough reason to scrap the plans. Dragging these people into the glaring light and forcing them to really admit why they take such offence at the plan is the only way to really dispel separatism - just like AA, you can't get better if you don't admit you have a problem.
Edit: To summarise; it's radical, but radical in a
good way that'll ultimately benefit the progression of intercultural cohabitation.
Edit 2: That was a
really long time frame to still allow a ninja edit