It would be a good thing if it was just a neighborhood, not a "Jewish neighborhood." It's this segregation that keeps Israel from getting peace. Designed segregation to keep people a part will only have them believing in the worst of each other (colonists vs. terrorists).
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Hamas operative, 24, accused of attempting to attack soldiers on Gaza border (Haaretz)
from the article: Biden, in D.C.: It's great to be where construction boom is a good thing