It's not even a good deal for Israel.
I can hardly see ISIS stopping at the borders of the "Zionist Entity"... and Israel could find itself with the same interest as Iran in stopping ISIS.
Basically. Bibi and the Likudniks have actually started truly believing their own BS. Iran was never and is never going to attack Israel. Even if they developed nuclear weapons, it would be idiotic to attack a country that has a much greater quality and quantity of nukes than they do. The whole "Death to Israel" / "Ohmyallah kill teh Jewz!" schtick is the Iranian equivalent of rube baiting. It wins elections. It's not different than Republicans insisting they're going to ban all abortions anywhere ever when everyone knows they don't use political capital for anything other than tax cuts for the One Percent.
Thing is, I think they're still stuck in the Ahmedinajad-era mindset. That guy was a genuine lunatic who might have decided that wiping out half the world's Jews was a good move on a whim.
I don't particularly trust Rouhani, but he has some sense of self-preservation. He understands carrots and sticks.
I imagine it's probably similar to what a lot of people in the US went through when Gorbachev replaced Chernenko.