Just becuase the Pals want something doesn't mean that Israel should just give it to them. Dividing the capital is a non starter. The Pals are divided, won't recognize Israel's right to exist and launch rockets at. Israel has said they will sit down to negotiate without preconditions, Bibi has agreed to a two state solution and yet Abbas wont talk. Why should Israel wait and put their country on hold. How about return our solider, stop the terror and recognize Israel.
Gunmen in Egypt kill guard outside Niger embassy (Reuters)
from the article: Netanyahu: Israel will resume West Bank building in 8 months