While we always have to be careful not to embrace each new conclusion made by archeologists (remember these people are sometimes out to make a name for themselves by proving the previous generation or a rival wrong), we should never be so naive as to believe that the Hebrew Bible narrative ever draws a picture far from mythos, even when it reports on history.
The First Temple (Solomon's Temple) was definitely not as grand or colossal as the narrative found in the Tanakh, and neither was the Davidic dynasty. The worship of YHVH seems to have always been competing with other national favorite deities, even though worship of YHVH had been made the state religion under the Davidic monarchy. A state religion that did not find full footing until after the Babylonian captivity would never have had a shrine or monarchy or state or capital as grand as written in its mythology.
Being of Jewish stock, I find myself startled again and again how little non-Jews really know about Jewish history. They see it through Jewish mythology--and as a Jewess, I can say without disrespect to my people or Judaism (because Judaism teaches this)--mythology is what the Hebrew Bible is. It teaches truths as in ethics, but not facts as in reporting on history. It is teaching what the Jews learned from history and not the history of the Jews.
The only time Jerusalem was massive was when the Herodians made it so. The great building projects of Herod, and the production of Herod's Temple was the momentous Jerusalem everyone remembers. The construction of the Bible was always looking backward, always trying to make the past bigger than Jerusalem under the Hasmoneans or Herodians. So David's Jerusalem was written to be bigger and better--but it probably wasn't.
Again, be careful. As a Jew I read so much from Jewish newspapers, and there is always another scientist or archeologist discovering this or that disproving this latest discovery or that latest finding--it's endless. It takes about 10-50 years after a finding before it becomes established as a proper theory.