More than a few nations recognize Jerusalem as the capital of Israel, and a few even have their embassies there. But that's not the point. Jerusalem IS Israel, east, west, north, and south, your warnings of a Palestinian "demographic bomb", or any other type of bomb, notwithstanding. As for your comment "I don`t think it`s asking for too much from Israel to remove itself from all of Gaza, and ALL of the West Bank, and allow a Palestinian capital in East Jerusalem" well, I don't think its too much to ask you to remove yourself from a debate you have no stake in.
Bennett, Deri expected to resign from Knesset, remain in cabinet under new 'Norwegian Law’ (Haaretz)
from the article: Sharon's second `big plan'