Then what's the Embassy doing in Tel Aviv??? Last time I checked, it was customary to put one's Embassy in a foreign country in that country's capital. Other, major, cities might have consulates, but the embassy goes in the capital. I find this annoying. The Foggy Bottom crowd needs to get with the program.
Of course, I find even more annoying that we have NO formal diplomatic presence in Taipei ... but that's a matter for another thread.
The State Dept doesn't think the timing is right to move the Embassy. I believe the initial legislation was passed in 1998, but with Presidential authority to delay six months at a time. Thus the President's campaign promise to move the Embassy during the 2000 campaign.
I'd agree about Taipai too. It's there and it's not going to become part of China involuntarily.