Before the country of Israel was created, the land had passed through many hands. Going backwards in time, it's been in the British Mandate, the Ottoman Empire, the Mamluk Calphate, the Crusaders Colony, the Ayyubid and more. The only time Jerusalem was the capital city before Israel was created was back in King David's time (1000 BCE). Since then it has never been a capital city of any country or society, until 1947.
There is enough drama going on inside Israel, why does the USA always feels the need to add to the whole controversy by making their own declaration on where and how things should be done in another nation? There is not going to be any resolution in Israel, there will not be any peaceful agreements between Palestine and Israel and no, there will be no proper arrangement on how Jerusalem is seen or recognized. That's what happens when you have centuries of grudges mixed in with religion and politics.