I will agree, that after the British and the French finished carving up Palestine for their own benefit after the First World War, Jerusalem for both Jews and Muslims left a lot to be desired.  But before that, going as far back to the Muslim conquest of Jerusalem, the Jews of the city, with perhaps a few exceptions, fared better under Muslim rule than either Roman or Christian. 

The conquest of Jerusalem was an easy and relatively bloodless conquest because the Jews of the city believed that life would be better under Muslim rule than Byzantine. And it was, especially during the first one hundred years and before the introduction of the double shahada where acknowledgement that Muhammad was the Messenger of Allah was added. Before that seminal change, to be left alone to live and worship as you wished, and not have to pay the Jizya, http://boreal.ca/Koran/Jizya.htm all you had to admit to was  belief in the one God and a last day, which for Jews and Christians was obvious.