There may never be peace: Rule 7: “There cannot be a deal on sovereignty of the Old City”
The core of the Jerusalem identity issue is the Old City, and a main lesson of 2000/2001 (from Camp David through to the parameters proposed by President Bill Clinton) is that it is not possible to do a deal dividing sovereignty there between the Israelis and the Palestinians, particularly when it comes to the Temple Mount/Haram-al-Sharif. The 1947 UN partition plan got it right—there will have to be some kind of special arrangement, at least for the Old City. There are models, and sovereignty could be given to God (leaving Israeli and Palestinian mortals to agree only to administrative arrangements), or kicked into touch (as when Olmert, in his potentially taboo-breaking 2008 offer to Abbas, suggested an interim arrangement for the Old City). Without such a deal, there will be no wider Israeli-Palestinian deal. And without an Israeli-Palestinian deal including a satisfactory resolution of the Jerusalem issue, Israel will never be accepted by the Islamic world.