It should not be under-estimated, nor mistaken for a consensus among Israel's elite. Even Goldfarb notes:
I've heard numerous Israeli officials describe Iran as deterrable. One Israeli nuclear official suggested that while the Iranian leadership might not fear the destruction of Tehran, targeting the holy city of Qom could achieve the desired effect. In other words, everyone is deterrable, you just need to figure out what your enemy holds most dear.
When Michael Goldfarb says that Netanyahu "hypes the threat," you need to believe the danger is real.