Netanyahu has endured not so lurid allegations of secret meetings with Isaac Herzog to form a government, yet that outcry's died down as Herzog insists that he will not join a unity government and will be firmly in the opposition. That indicates that the right-wing pro-settler and ultra-Orthodox parties will form the first 2015 coalition of government in Israel. A two-week extension of talks by Israeli President Rivlin, to eventually form a government is predicted.
Herzog is confident as chief of Zionist Union, a centrist-left party in Israel, that Bibi will bring down whatever government he forms saying, "...Netanyahu will lead the government to hit a wall, in the end." It will likely be May before a coalition government in Israel is formed.
Benjamin Netanyahu is currently facing the agreement between the world powers, plus Germany, with Iran, over its nuclear program, while Russia is going through with a long-planned and long-held up shipment of S-300 surface to air missile systems to Iran for defense. He's facing a drop in traditional bipartisan support in the US where Democrats are tired of the lip-service to the Two State Solution(tm).
And in a threat largely seen to be real, President Barack Obama might withhold a veto on a French multilateral joint resolution in the UN General Assembly this coming September recognising the state of Palestine within the 1967 borders. This at a time in President Obama's presidency where thoughts turn to Middle East peace making; and a very fraught relationship with Bibi over the 'illegal' colonies that Israel continues to expand contrary to long-standing stated US policy.
But in the long run it may be Israel's history, the recorded actions, and the admitted official actions, that may further erode what was once a bright future had they not had their designs on land outside of Israel's internationally accepted and agreed to borders. Israeli Prime Minister Menachem Begin admitted in the early 1980's that Israel had a "choice" in both the 1956 War and the 1967 war. It is becoming apparent that the long interest about Israel by an untold number of people around the world, of being a plucky little democracy, carving out a unique niche in the Middle East with equal rights for all, is not the utopia that it was made out to be. The true threat to Israel is that it will be seen as just another repressive regime in an array of them in the Middle East.