Israel is in tricky situation here. They can either respond and risk a further escalation, or not respond and may look weak (although I wouldn't argue they're weak, taking down 99% of drones is massive). I think going forward it might be best to wait a few weeks until tensions have eased and consider some retaliatory action below the use of force like cyber attacks etc.
From a strategic standpoint, Iran overall has lost. Before the attack, Israel was increasingly isolated among their Western partners for the handling of Gaza, now the entire West has again expressed solidarity with Israel. Furthermore, Iran's aggresive course put Arab players in the region in alarm. Iran is even more isolated in the Muslim world than it was before.
At least the damages were limited and just few were injured. Still wish there was nobody hurt, but it would have been much worse.
Don't really see how they "look weak" here. Their attack was far more strategically consequential than Iran's which was just a token face saving attack so they wouldn't have to deal with domestic riots with people mad they were getting pushed around by Israel. The Iranian government aren't idiots (as opposed to the illiterate cavemen in Hamas), they knew 99% of the missiles would get shot down and no significant damage would be done, it was just for show. As other have noted Iran has the capacity to have fired far more missiles than they did and do real damage, they just chose not to. Iran doesn't actually want a full scale war with Israel.
Pretty much everyone sees it this way except for the worst extremists on both sides: dirtbag leftists who were cheering for the bombings like it was sports and hardcore Zionists looking for an excuse to take down Iran.
