Israel certainly has reason to be concerned about arms smuggling into Gaza after its withdrawal from the area. As a result, Israel is proposing that the border crossing be moved to a location where Israel, Egypt, and Gaza all meet. The crossing would be manned by Israelis, Egyptians, and Palestinians.
Arms smuggling into Gaza, especially through tunnels, has been problem in the past, and it would assuredly increase after the Israeli pullout, unless proper security arrangements are in place.
The AP, as usual, takes a particularly harsh tone, as it focuses on Israel the bully:
Israel ruled out giving the Palestinians their own gate to the world, insisting Monday it will control traffic in and out of Gaza after Israeli settlers and soldiers leave. Palestinians complained Israel is unwilling to loosen its grip on the coastal strip.Emphasis is mine. Yes, it's all about Israel not wanting to give up control. I'm sure that international inspectors would do a great job (of looking the other way).
Just a week before the pullout begins, Israel's Security Cabinet met to consider how to deal with the crossing point at Rafah between Gaza and Egypt. Rather than endorse a plan for international inspectors to handle customs and security, the Israelis insisted on moving the crossing to the point where Gaza, Egypt and Israel meet — and on retaining Israeli control.