First of all, Jericho is the oldest-inhabited city in the world, though Jerusalem is more important.
When Jordanian Muslims ruled Jerusalem, they forbade Jews from praying at the Western Wall, destroyed synagogues, and turned gravestones into latrines. Jews will never go back to that.
As for pluralism, unlike most ppl here, as someone who has actually BEEN to Jerusalem, I can say that all the Muslim, Christian, and Armenian holy places are kept in tip-top shape and are open to all. Israeli tourism would suffer, if they weren't.
While Jerusalem is mentioned around 700x in the Hebrew Bible, it's never mentioned in the Quran. Now that doesn't mean that Muslims can't pray there (though they turn up their asses to Jerusalem, while praying towards Mecca). It only means that Jerusalem will remain Israel's capital city. As Jews pray: "If I forget thee, O Jerusalem, let my right hand wither, let my tongue cleave to its palate, if I do not place Jerusalem above my chiefest joy."