The Palestinians also consider Jerusalem holy. 20% of them are Christian and 80% are muslim. It's selfish to declare such an important city all for one religious group. Just because Palestinians aren't jewish doesn't mean they should be discriminated against. They deserve to have part of Jerusalem especially after that they've been going through under the occupation.
Israel cannot be allowed to occupy all of Jerusalem like it does not, not forever. East Jerusalem must be given back to the Palestinians, as dictated by international law. The Palestinians have a right to nationhood and to have their own capital, and Israel cannot be allowed to rob them of this.
Jerusalem is a city in the midst of the nation of Israel. Israelis do not want the city to be divided, and they have committed no crime that warrants outside invasion or intervention in creating such a division. Therefore, international law should not apply and Jerusalem should remain a city undivided.