The state of Israel can continue its aggressive ways because of international support, including that of the U.S. and Britain. In this respect there is little sign of change from Obama, certainly from his election campaign, although overtures to Arab states to open dialogue are shifting the ground in prospect. However threats to Iran and any other state with nuclear capabilities or aspirations are likely to fall on deaf ears while Israel holds a nuclear arsenal.
David Halpen asks questions around all this illogicality.

The mood of Israelis leading up to the polls was described as apathetic as far as politics is concerned by a Washington Post correspondent. There is no clear lead between the front runners Likud and Kadima and the most highly charged atmosphere is around the far right Lieberman, who is demand an oath of allegiance. This is particularly aimed at the Arab Israeli population who were involved in rallies protesting against the Gaza strike. During the run up to the election far right candidates had to be taken out of Arab-Israeli areas because of violent opposition.
However it is fear and insecurity that dominates, but the idea that going further and further right will ever lead to a permanent peace seems totally counterproductive.
More on Arab-Israelis.