Let's just be practical and listen to Nir Barkat, Jerusalem's Mayor:
By 2030, the city's population will expand to one million residents from 800,000 today (33% Muslim, 2% Christian and 65% Jewish). Where does the world suggest we put these extra 200,000 residents? The expansion of Jerusalem's residential areas is essential for the natural growth of all segments of our population. It enables Jewish and Arab families alike to grow and remain in the city. The capital of a sovereign nation cannot be expected to freeze growth rather than provide housing to families of all faiths eager to make their lives there. As for "E-1," this land has always been considered the natural site for the expansion of contiguous neighborhoods of metropolitan Jerusalem. "E-1" strengthens Jerusalem. It does not impede peace in our region. The international alarm about planned construction is based solely on the misplaced dreams of the Palestinians and their supporters for a divided Jerusalem.