Almost anyone who lives in Jerusalem knows that the area in dispute, Ramat Shlomo, is a Jewish neighborhood and has been so for thirty years. Ramat Shlomo is located between the two sections of Jerusalem that were in Israeli hands when the 1948 ceasefire was signed. It is on the way to Mt.. Scopus, which includes Hebrew University and Hadassah Hospital. It is surrounded by other Jewish neighborhoods and no Israeli in their right mind would consider surrendering it in any final peace deal with the Palestinians. Giving up Ramat Shlomo would be the equivalent of giving up the world famous Hebrew University on Mount Scopus, the tony Jerusalem suburb of French Hill and even the Jewish Quarter of Jerusalem's Old City. All three are just as integrated into the Jewish identity of Jerusalem as Ramat Shlomo.
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from the article: Top U.S. Reform rabbi to Israel: Freeze East Jerusalem building