According to this article, engineer Adnan Husseini acknowledged to Voice of Palestine radio that the south wall of the Temple Mount is indeed in danger of collapsing.

He went on to repeat his previous (apparently fabricated) claim the Wakf had begun repairs but the Israelis had forced them to stop 20% of the way through. In August, the Palestinian al-Ayyam paper quoted Husseini as saying that the wall was not endangered, as does this BBC article - titled "Wailing Wall collapsing" - which confuses the endangered Southern wall with the stable Western ("Wailing") wall.

Husseini now says:

The Israeli authorities bear the responsibility for any loss of lives resulting from a collapse of the wall,"

Here's an earlier blog entry including an aerial view of the site.