Have you ever lived in Jerusalem? I have. It's too mixed up. There is a street with Jews, a street with Arabs, and streets with Arabs and Jews together (Katamon). In the 1930's the British created separated ghettos, "The Jewish Quarter" "The Christian Quarter" "The Moslem Quarter" and "The Armenian Quarter" and forced all the Jews not living in "The Jewish Quarter" to move there. Then in 1948 the Jordanians chased all the Jews from "The Jewish Quarter."
The reason the Beit Yisrael district has been attacked so frequently is that it is only a few blocks from an Arab neighborhood. It is impossible to construct barriers because the neighborhoods merge with each other--there is no demarcation.