Shmuel Rosner has a detailed breakdown of the Israeli election results in all their bewildering complexity. Although Netanyahu has indeed been weakened, the religious right in Israel is far stronger than in the US. But the country is also deeply divided, as you can see above. The difference between Tel Aviv and Jerusalem is what popped out to me and to Jeff Weintraub:
And they are both struggling for the soul of the country as liberalism in its broadest sense battles fundamentalism. In America, Obama has saved us by defusing the theo-authoritarians. In Israel, no Obama has yet emerged since Rabin.