> Israel also ends up weaker here. The nuclear threat is unchanged. But the deaths in Iran will fuel enlistment in anti-Israel terrorist organizations for another generation.

I agree with everything else you wrote, but I'm not sure that this is considered a loss by Israel's current government.

1. Israel is used to having enemies all over the world, so by now, the population doesn't care all that much.

2. The Likoud and its far-right alliance actually needs enemies to remain in power.

Also, any reduction in the number of missiles that Iran can launch at Israel, and any reduction in the number of AA armament that prevents Israel from bombing Iran again is good for Israel.

Where Israel will feel the loss is the 2M$ levy, because this means that Iran will rearm that much faster.

True, if the presence of active terrorist organizations is beneficial then this is a win.

Politically it might suit Israel to have overt enemies. I'm not sure it's necessarily advantageous to the population, but that probably doesn't matter.

I suspect one clear outcome is that Iran now completely understands the importance of cheap, effective, munitions (drones and missiles) and so will likely build those up quickly. That might affect munitions targeted at Israel.