Other big stories in Israeli politics

Israel's natural gas discoveries
     On the recent discoveries of massive natural gas deposits in Israel's territorial waters that will make Israel an energy exporter rather than importer.

"Geopolitical game changer," Gal Luft. Haaretz. June 11, 2010.

Immigration and refugees
   Israel is one of the most attractive destinations for African refugees, among many others. Many thousands are desperate to reach Israel, by whatever means possible. Israelis seem to be of many minds on what to do about this--sympathetic and wary at once.

"15 African athletes 'disappear,'" Ahuva Mamos. Yediot Aharanot. June 9, 2010.

Governing conversions
    Perhaps the most important point of tension between Israel and the Jewish diaspora (particularly American Jews) is about the ultra-Orthodox monopoly over Jewish conversions and who counts as a Jew by Israeli law. (NB: secular and liberal Jews didn't do themselves any favors by letting the Orthodox tend to all that "weird religious stuff" for so many decades.)

"Knesset committee approves conversion bill," Kobi Nahshoni. Yediot Aharanot. July 12, 2010.

"Sharansky, US rabbis discuss conversions bill," Yediot Aharanot. June 14, 2010.

"PM: Conversions bills won't cause a rift," Kobi Nashoni, Yediot Aharanot. June 6, 2010

Military service
"Israeli army enlists PIs to track women who dodge draft by claiming religious exemption," Diaa Hadid. Associated Press.  March 17, 2009
  A major point of tension between ultra-orthodox Jews and other Israelis (including more modern orthodox like the Chabadniks) is over service in the army, a universal obligation of service to the state, and a key rite of passage in many more mundane ways, from which the very religious can claim exemption.