I am now back in Jerusalem.
The hotel I chose based on recommendations and their Web site is excellent. I can only recommend the Jerusalem Hotel (next to Damascus gate).
This is in East-Jerusalem and my cab driver was surprisingly angry at me for wanting to go there. We argued for ten minutes about the address, in Hebrew, and I finally rang the hotel and asked them to give him directions. They told him exactly what I told him (he put them on speaker).
He finally seemed to believe me. I also rang my Danish friend and asked him to speak with the driver, and I assume he told him the same. The driver still didn't calm down though.
The hotel is very nice, the most friendly people.
I took the train from Tel Aviv to Jerusalem this morning and I can heartily recommend the route. It's beautiful. The trip takes about one and a half hours.
I am but ten minutes from the old city and I plan to go there later today. I also have to go to French Hill to meet friends. (French Hill is a predominantly Jewish neighbourhood in East-Jerusalem next to Mount Scopus where the university is.)
And my room has Internet access.
An article about Haifa (with pictures) will follow once my personal situation is a bit clearer (long story). At the moment I don't have the energy. I also have to find out how to include photos.
Update: I just ate in a restaurant with a picture of Arafat overlooking the premises. I think we still have some way ahead of us.