They want a one state solution for Muslims only, with Jerusalem as their capital and their capital alone.
According to senior Pali Muslim official Hanan Ashrawi, US Secretary of State John Kerry in his recent speech on Middle East peace didn’t go far enough because Kerry gave Israel “a great prize” by referring to it as “a Jewish state” – something the Muslims have never accepted and never will. She says there can never be a Jewish state within any borders and they would never share a capital in Jerusalem with the Jews. (Good, that way in the next war, Israel can demolish the al-Aqsa mosque and send all Muslims to land that was designated by UN as the Palestinian state – Jordan)
Acccording to one report, moving the embassy to Jerusalem would be the final death blow to the failed peace negotiations, the Palestinians have threatened. The Trump official reportedly replied that “there is no Palestine, and Jerusalem is not your capital. If you stop the incitement to terror, put in place full economic transparency, stop acting unilaterally at UN bodies and accept a US embassy in Jerusalem, we (the US) would consider a US diplomatic mission in Ramallah and call upon the Israelis to enter into serious negotiations with you on a long-term relationship.”