Israel was a land stolen, but it's certainly not the Israelis' fault that the land was stolen, and they should not be forced to give up more than is necessary for the Palestinians to create a stable state. Jerusalem should remain in Israel and a new Palestinian state should be either under strict arms limitations or completely demilitarized because, whether you like it or not, the Palestinians are sending rockets into Israel daily, and those that are sending the rockets want Israel gone, not parted slightly.
D.C. is not a neutral state between two countries, nor have Virginia and Maryland been proud to call each other enemies for thousands of years. If they are going to neutralize Jerusalem, they are going to end up splitting it east and west. And I guarantee you Israel wants to keep the tourism so they'll be taking west.
The reasonable solution is to partition Israel, allowing Israel to become the Jewish state that they wish to be while giving the Palestinians their own state. It works for both sides *as long as* the two don't fight further. That's critical.
That said, for those of you that think this is all Israel's fault, you're deluding yourselves. The Palestinians and the rest of the Arab nations have caused just as much harm toward the Jewish people and impeded the peace process just as much as the Israelis have. If you can't see that, you shouldn't be in this conversation.