They have nukes. They easily handled Iran, a nation 10 times their size and with a large military industrial complex. Nobody at the nation-state level is going to seriously threaten them.
Their biggest danger is pretty much self-inflicted or self-fulfilling at this point - every time they kill an innocent person, they are creating one or more people, whether it be a parent, child, spouse, sibling, cousin, friend of the dead person, who want to see Israel punished. More than a few are willing to risk their lives in that pursuit. That could take the form of the stereotypical "person strapping a bomb to themselves and setting it off in a crowd" or more likely it could be somebody who is in a position to pass along information that winds up in the hands of Hamas, whether it be in an office somewhere (perhaps a janitor) who comes across sensitive information, or they work/live in a geographically sensitive area and can see things like Israeli troop movements. Or they could function as a courier, since Hamas has learned to be more careful about their electronic devices. In short, Israel is creating new enemies every day, and for these new enemies it's personal - it's not some religious nutcase sitting in a Mosque who is talking shit to gain power over large numbers of people, it's a person who has lost a loved one or friend to the actions of Israel.
I can speculate all day long about Netanyahu's short-term goals, but there is clearly no long-term goal of peace for Israel.