Ian Bremmer, guru of the political futures market, takes a gamble on what the future of Israel will look like. Not so good, in short:

Once Hezbollah can hit Tel Aviv with a rocket equipped with a relatively sophisticated guidance system from anywhere inside Lebanon, life will be much tougher for Israelis.
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[A]s Tel Aviv becomes directly vulnerable, Israel's extremely mobile and globalized population -- and its strong activist diaspora -- will become a weakness, because they will be the most vulnerable to attack and the first to leave.
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At that point, there's a risk of a sharp shift to the right in Israeli politics, much sharper and further to the right than the one we've seen in recent months. Under this circumstance, we'd likely see the most democratic government in the region in much more direct conflict with Israeli Arabs. We'd also see a spike in violence in Gaza, the West Bank, and within Israel's borders.