A change of the signs would be madness!
As "Yerushalayim" is significant longer than "Jerusalem", it would cost Israel trillions in extra ink and paint costs!

And imagine all the t-shirt vendors in the old town, they all had to destroy their Jerusalem shirts...
On the other hand, how can one be against this proposal when it comes from a hot gal like her:
Only her teeth creep me out a little, but she would be perfect to have political arguments and makeup sex afterwards...
If the place names are the biggest problem between Jews and Arabs, then they have no real ones left and can happily smoke a big spliff together.
And the episode about the boy in the plane is odd: it would be the same when the author would fly to Munich with an English-speaking child; the kid would probably say: "No, it's München!" - hardly nationalism, just a correction by a child. Well given, the Bavarians are weird, but anyway, no big deal.