AIPAC and current government strategy is all about short-term gains without thinking of the future (but Bibi obviously doesn't care, he won't be in politics anymore when that happens).
Considering Israel faces literal existential threats, I think they can be forgiven for taking a short-term view on this matter.
Literal Existential threats? You do realize this is 2016, not 1967 or 1973, don't you? That isn't to say that Israel doesn't face some severe threats, but to say it faces an existential threat is definitely not being literal in what one is saying.
A nuclear Iran, or even a joint invasion by the Iran/Syria/Turkey axis, is definitely an existential threat for Israel.
For the entire ME, in fact.