An interesting commentary by Benjamin Kerstein on the Israeli perspective on events in Egypt:
At the moment, most Israeli commentators are considering the nightmare scenarios. This is understandable. Pessimism is always the smartest attitude to take in the Middle East, and previous revolutions in the Arab world have tended to have rather nasty outcomes for Israel. Ever since the Yom Kippur war in 1973, Israel’s leaders have tried to err on the side of the worst case scenario. In this case, that would be the takeover of Egypt by the Muslim Brotherhood or a coalition of radical Islamic parties. Such a government might well abrogate the 1978 peace treaty, removing a cornerstone of regional stability and of Israeli defense strategy. Another war, much worse than anything since 1973, might follow. Even worse, a domino effect could follow, leaving Israel essentially alone against a Middle East that has been given over entirely to the totalitarian fantasies of radical Islam.
A secular, even democratic government, however, could present its own problems. It could prove to be equally hostile to Israel, given the massive popular sentiment against the Jewish state on the Arab street. It could also take a far more active role in pressuring Israel on behalf of the Palestinians, in whom Mubarak was always largely uninterested. Where Mubarak merely made gestures toward solidarity with the Palestinians, a new secular government could well make the issue one of its primary concerns; if only to shore up its legitimacy at home and in the Arab world at large.