Should Jerusalem be a international democratic city-state? A city that is it's own country a la Vatican City. Turning Jerusalem into a international and independent city can help solve the problem of "who's capital is this" and all the bull associated with it. It would have it's own government and defense would be the responsibility of NATO. Expand the city a little and the city would be the capital of Israel and Palestine. It makes sense. It would have it's own international airport. It would issue it's own passports so to speak. The city would be a cultural center for Muslims, Christians and Jews. I don't see why this could not be done. Also wonder why the UN never propose something like this. Government buildings for Palestine and Israel can be located anywhere within city limits. It would obviously have it's own law enforcement agency.
It's own heath care system as well as other social systems. Since the city is located just outside the WB and in Israel, this would not be such a bad idea.
Arafat wants the east and Israel wants the whole thing so why not just make it an independent city. Neither side owns it and both sides can have equal access.