Though it's a good sign that this heinous bill was voted down, Bennet's coalition didn't lose the vote because of moral considerations but because of opposition to his coalition. Israel is committing the crime of apartheid in the occupied West Bank, and with every passing day, this becomes more apparent.
The Palestinians have had many chances since Israel's foundation to have a state of their own, but they have consistently refused and chosen terror instead. Settlements are not a barrier to peace, as some like to make them out to be, and there will only be a Palestinian state when the Palestinians put down their arms and accept Israel's right to exist.
Netanyahu's chances of returning to power seem better by the day. Critical members of Bennet's coalition voted against the legislation, and the Israeli public is getting fed up with the government's continued deadlock and inaction. If elections were held today, Netanyahu's bloc would be expected to win 59 seats, putting it near a majority in the Knesset.