Why not just split it 50/50?
Of course, the ideal solution would be to take Jerusalem away from both of them and make it an independent city-state, with equal visiting rights for Israelies and Palestinians, but that'll never happen.
BECAUSE PEOPLE ARE SO FUCKING STUPID ABOUT THEIR RELIGIONS.
Yes, I appreciate that it's not ALL about religion, but because of it (if I understand this correctly), both sides want Jerusalem and won't stop fighting and killing the other side until they get it.