For some people, that verse is a big part of it, true. There are also places where it suggests that the second coming will happen after the temple is re-established on the Temple Mount. But, not even all Christians and Jews agree on that interpretation.
We have a secular government. Those verses can be interpreted multiple ways. There are people who think that the original covenant between God and the nation of Israel changed when they rejected the messiah, for example. And the irony is, as far as Trump is concerned, I'm reasonably sure it's nothing but superstition. It's calculated to keep the fundamentalist Christians who are in Trump's camp in his camp, come hell, high water, or the election of a credibly accused pedophile. Because, oh yeah, there are people who can spin scripture to make THAT look like it's ok too. (I did say I think they're spinning it. Personally, I don't think is says anything of the sort.)
Recognizing Jersusalem as Israel’s capital closes no doors.
I think, as far as the Palestinians are concerned, it does. And, as far as them being terrorists goes, if something similar were to take place here, I'd like to think I'd be in the front line, defending what I think of as my home. This is very much a case where one person's terrorist is another person's freedom fighter.
This whole thing has been a mess from day one. The establishment of Israel after WWII was, at least in large part, the world reacting out of guilt for dropping the ball with regard to Hitler & co. (Note to world, never underestimate the potential of a bad guy to do bad. Note to US, we have some bad guys running the show here these days. "Bad guys" is not meant to suggest an actual gender limitation on the people involved.) That was a nice idea that totally overlooked the fact that there were already people their who thought it was their home.
Here's the thing about THAT. People have been kicking other people off their land since the dawn of time. If you're the one doing the kicking, it probably seems fine. If you're the one being kicked, not so much. If, later, someone decides to right the "original" wrong, they're going to end up wronging someone else in the process. By the same logic that created the nation of Israel, this country ought to be given back to the remaining indigenous peoples. Interesting thing about that. Where I live was fought over by the Dakota & the Anishinaabeg. (And that's only the part of the history of the land that I know.) Which group do we give it back to? What year do we pick to be "fair"? We have the same problem basically everywhere in the world that there's major conflict.
Maybe, as a species, we ought to come up with a way to quit trying to undo the past and just respect each other going forward. I seriously doubt you can FIND a group that hasn't done something bad to someone else at some time. We actually can't undo the creation of Israel without invoking the same problem, so the Palestinians probably need to find a way to live with the Israelis. It would help if the Israelis didn't treat them as second class citizens or worse.