Yes, there are neighborhoods that are almost completely inhabited by one group or the other~have a look at any city in the world, is this not also the case? There will always be segregated neighbourhoods, but more and more, people are moving to where they find work and areas in which they want to live. Many Jewish areas are populated with Arabs and vice-versa. This how life is.
The new tram going through the city does not discriminate, and as in all of Israel the instructions and signs are in Hebrew, Arabic and English. There are an equal number of Jews, Arabs, tourists, religious, secular and "characters" crowding in.
Imagine the outcry if people started demanding that London or New York be divided! Divided cities never work, history tells us that. In Jerusalem people just want to get on with their lives. It is time for the anarchists and all the rest of their ilk to butt out!