The Forward's J.J. Goldberg, an astute and sympathetic observer of Israel, has this assessment of Tuesday's election results. The Jewish Daily Forward.
UPDATE: A sobering assessment by an Israeli journalist, skip the part about polling and media errors and go to: "President Obama allowed Netanyahu to reach the heart of the administration's nerve center and stand there, to deliver a speech to both houses of Congress, as if he was the American president and not the head of a tiny country dependent on the US. Next to Netanyahu, Obama suddenly seemed like Isaac Herzog. He publicly hazed the president, and got home safe and sound. The Americans should have made Netanyahu pay a price, but they did not do this." True? What would the price be? It goes on to lay out the shape of the next Israeli government. Whole thing here.
More: "In his first interview since his re-election victory, Prime Minister Benjamin Netanyahu of Israel walked back his rejection of a two-state solution." NYTimes on-line, Thursday afternoon.