That’s just what the Palestinians need, a dose of tough love. First, make them face the fact that Jerusalem is indeed the capital of Israel and will not be divided. Second, cut their funding, and make them face the fact that they are a basket case, that they have been spending all their efforts and their foreign aid on fighting the Israelis, instead of developing their own state institutions and improving the plight of their people. Without foreign aid they are nothing.
Previous US Administrations (from Nixon to Clinton, Bush and Obama) have always put pressure on Israel, because Israel was an ally and therefore amenable. And there was either sympathy for the poor suffering Palestinians (by liberals), or the realization that the Palestinians weren’t going to budge (conservatives), so the only route was to apply pressure on Israel. But, Trump (maybe) has realized that this approach has not worked, there is no point in trying to appease the Palestinians at Israel’s expense because it hasn’t worked and it won’t work. Israel is too strong and too important to the US to keep doing this.
Whether from serious strategic analysis, or as a result of right-wing advisers or from gut instincts, Trump has come up with the only real way of making progress in this dispute. Namely to pressure the Palestinians. Make life so difficult for them that they have to budge, that they have to turn from their traditional way of responding to every event and every action – negatively. Also, Pres. Abbas of the PA is old and incapable of any other response. They need a younger, more pragmatic leadership that will open their eyes and see their true situation, that they lost and cannot win, and it’s hopeless, and only then can they came to terms with Israel.
Like the countries around them, Egypt and Jordan, who fought many wars with Israel, but each time they were defeated, and eventually a leadership arose (Pres. Sadat, King Hussein) who saw the impossibility of defeating Israel and the necessity to make peace. The difference between them and the Palestinians is that they will have to make territorial sacrifices and also they don’t really have an army and will have to give up terrorism as their only response to the situation. Only in this way can peace eventually be achieved.