Yisrael camped there” (in the plural) is not written here, but rather: “Yisrael camped (in the singular) there.” Rashi (ibid.) describes this phenomenon with the metaphor: “As one man with one heart.”
The United Yerushalayim
This explains why HKB”H chose the name Yerushalayim to appease both Avraham Avinu and Shem the son of Noach. He wanted to emphasize the teaching in the Midrash—that all of the Berachos, consolations, and benefits that HKB”H bestows upon Yisrael are all from Tziyon. This is true in particular of the Torah, as it is written: “For Torah will come forth from Tziyon and the word of Hashem from Yerushalayim.” But there is a precondition—that there is shalom, the vessel that preserves berachah, among those studying Torah. Hence, the name Yerushalayim itself symbolizes the shalom between Avraham and Shem. This then is the message of the passuk (Tehillim 128, 5): "יברכך ה' מציון וראה בטוב ירושלים כל ימי חייך"—may Hashem bless you from Tziyon, and may you gaze upon the goodness of Yerushalayim, all the days of your life. Nevertheless, as we have explained, there is a condition (ibid. 6): "וראה בנים לבניך שלום על ישראל"—and may you see children born to your children, shalom upon Yisrael.
Based on what we have learned, we can shed some light on the meaning of Yisrael’s sweet psalmist (ibid. 122, 1): "שיר המעלות לדוד שמחתי באומרים לי בית ה' נלך, עומדות היו רגלינו בשעריך ירושלים." A song of ascents by David. I rejoiced when they said to me, “Let us go to the House of Hashem.” Our feet stood within your gates, O Yerushalayim. Indeed, all the Berachos and consolations emanate from Yerushalayim; however, there is a prerequisite, which is alluded to by the name Yerushalayim: “The built-up city of Yerushalayim is like a city that is united together. In other words, to form the name "ירושלים", the names given by Avraham and Shem were joined together, to emphasize the importance of shalom among those who study Torah.
The psalm goes on to explain why shalom is required in Yerushalayim (ibid. 4): "ששם עלו שבטים שבטי י"ה עדות לישראל להודות לשם ה'"—for there, the shevatim ascended, the shevatim of G-d, a testimony for Yisrael to give thanks to the name of Hashem. As we know, every tribe has its own unique way to serve hashem. Therefore, it is imperative that shalom prevails among those who study Torah and serve Hashem, since it is the vessel that preserves berachah. Additionally (ibid. 5): "כי שמה ישבו כסאות למשפט כסאות לבית דוד"—for there, sat thrones of judgment, thrones of the House of David.
After all, it is impossible to attain and retain Torah in the absence of shalom. Therefore (ibid. 6): "שאלו שלום ירושלים"—pray for the shalom of Yerushalayim—the shalom symbolized by the name Yerushalayim must be sought and prayed for; "ישליו אוהביך"—those who love you will be serene—those who love her will strive to serve Hashem by abiding by His precepts to achieve shalom; "יהי שלום בחילך שלוה בארמנותיך, למען אחי ורעי אדברה נא שלום בך, למען בית ה' אלקינו אבקשה טוב לך"—may there be shalom within your wall, serenity within your palaces. For the sake of my brothers and my companions, I shall speak of shalom in your midst. For the sake of the House of Hashem, our G-d, I will request good for you. For, shalom is the vessel that preserves berachah to bestow abundant bounty and good upon the entire House of Yisrael.