"He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
Netanyah (correct me if I am wrong Tash) seems to be taking the moderate route at the moment. The election-winning Livni has taken her party and juxtaposed the new forming coalition; a fine amount of electorates have their support in the Kadima party and Netanyahu appears slightly threatened by that margin. Even though Netanyahu was able to build a coalition, the amount of differences within the coalition cannot possibly make his job any easier. Lieberman and his "Our Home" party gathered up enough votes to become a prominent member within the coalition.
Netanyahu will play puppet for a good while, however, Lieberman is a real threat to the rationale of the Israeli foundation. Lieberman's contingency is speculated to be built largely on immigrants from the former Soviet Union, whom wish to take the rabbinic foundation of Israel right from under it's feet. Israel, as most accept, is a secular state, however, there has always been a large Sha and Rabbi foundation in the political system (and of course the social system).
Lieberman is promoting ultra-nationalism and a liberal-religious view; with the idea of pledging loyalty to the state, obviously a move to promote the state over the religion. The Ultra-Orthodox and Lieberman, within the Israeli coalition, will have problems. So I do not see much coming out of this, I picture a stalemate between the Orthodox and Lieberman's kingmanship.
Either way, it will be a really interesting turn of events.
"I do not underestimate the ability of fanatical groups of terrorists to kill and destroy, but they do not threaten the life of the nation. Whether we would survive Hitler hung in the balance, but there is no doubt that we shall survive al-Qa'ida." -- Lord Hoffmann