The Sinai is such a large and strategically important piece of land that it seems hard to believe that Israel agreed to return it to Egypt. Was there opposition to returning Sinai to Egypt within Israel at the time?
Absolutely. There were settlers in the area who did not want the area returned, and there was opposition especially because the Israeli Prime Minister himself (Menachem Begin) had promised that he would not remove a settlement from the area. This represented a significant roadblock during negotiations, until eventually a way to circumvent the promise was found; the Israeli Knesset (Parliament essentially) would be the one to do it, without him. However, it was not totally that it was the settlers or tacticians were in opposition, but rather that both groups were afraid. They felt that allowing any ceding of ground would lead to further cessions in the West Bank and Gaza, which was obviously far more worrying than ceding the large but mostly desert Sinai.