We can lose most of East Jerusalem. It is not a "united city" which is obvious to anyone who looks at it. The Palestinian parts of the city will obviously be part of a future Arab entity. The problem is what to do with the Temple Mount and the City of David. These should remain under Israeli soverignty and hence under international scruitiny. Such historically, archeologically, and religiously significant areas need to be protected and this obviously will not happen under Palestinian rule. Even now, the Waqf is trying to destroy the remnants of the Second Temple, and that is under Israeli soverignty. It will only get worse if Israel gives up the area.
Law expanding definition of terrorist activity passes first Knesset reading (Haaretz)
from the article: Heading to December