I don't think Netanyahu's "victory" changes much. More than half the electorate clearly wants change of some kind, probably including some of the younger Likud people. They don't quite trust the left to provide it, understandably given its past record, but they're looking for someone who will.
I think it will remain more or less logjammed until someone is able to put together a multi-ethnic, post-Zionist party that can win a clear plurality of the electorate. Imagine if Obama said, "I want a progressive majority but I won't make deals with any Black or Hispanic leader in order to achieve it." That's sort of the position the Israeli left is in now, and it's actually pretty impressive that they can reach an effective tie that way. But not more.
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