Based on what read in the docs and some of Manuel's posts to the list, 
seems like having a routable subnet for DMZ is NOT a good idea, or am I 
missing something here?

I wonder what is the theory behind this. Why using proxy ARP or 
bridging is better/cleaner? There is LAN <> DMZ issues for bridged 
interfaces, and I always thought that proxy ARP should be used as a 
last resort.

I have been using spilt subnets (routable IPs for DMZ) for a few years 
with a custom FreeBSD+IPFilter+NAT box, and didn't really have any 
problems.

Can anyone enlighten me on this?

Cheers,

Roman