I am afraid to say Michael you are getting your hopes up too quickly and this is not the time that in your the US has finally seen the light on your eyes. Unlike the West Bank that most Israelis could not give a toss about the vast majority do about Jerusalem. There is no Israeli government that would dare stop any building in East Jerusalem even Ben Gurion would not have done it. The US can not force its will on what the vast majority want in a democratic country as that goes against all US democratic principals too. They could not seen to be undemocratic. Plus AIPAC are piling on the pressure to Obama and make no mistake he is not above it and it he will fear it. The US has tried something realised it has backfired and they will not do it again. Now they are just trying to mend the fences. Netanyahu on the other hand has out manoeuvred Obama again and come out stronger than ever.
Woman arrested trying to jump White House fence (Reuters)
from the article: Peres: We want U.S. ties to return to positive state