Dividing Jerusalem: Poll
"When asked whether or not Prime Minister Ehud Olmert could achieve a public mandate allowing him to change Jerusalem's status as part of a permanent peace agreement with the Palestinians, 52% of those taking part in the poll said they would lend their support to such a move if 80% of the ministers were behind it."
However, the same poll found this:
"Should Israel compromise Jerusalem's statues as part of any future peace agreement with the Palestinians? Sixty-three percent of those asked said they think Jerusalem should not be included in a peace agreement, 21% thought it should and 16% would agree to it only if the motion was carried out by referendum."
It's possible, of course, that Israelis are really attached to Jerusalem's statues, and don't wish to harm them in any way. More likely, however, Israelis just don't see peace as in the cards right now, and aren't willing to make concessions as part of an agreement that won't work.