Prime Minister of Israel Ehud Olmert announced he will not run in the Kadima primaries. With across-the-border opposition to Olmert, his Kadima successor would have no trouble forging a new government and replacing Olmert by the end of September.

Olmert might quit prematurely in order to pass the office to Mofaz and improve his chances in Kadima primaries. Presumably, an acting prime minister has better chance in primaries.

Olmert’s successor, be it Shaul Mofaz or Tzipi Livni, would be immeasurably worse than him. Of all the Israeli prime ministers during the last twenty years, Olmert was the only one who, through political intrigues, managed to give nothing to Palestinians and leftist defeatists.

Under Olmert’s government, Israel attacked Lebanon at the first pretext, though she had routinely swallowed similar kidnappings before. The results of the Lebanese war were as good as practically possible: Olmert could not occupy Lebanon, change its government, or carpet-bomb it. Military misdoings during the war were the Defense Minister’s and Chief of Staff’s fault, not prime minister’s.
Olmert quietly and courageously ordered attack on Syria, and did not use the operation for self-promotion as every other politician would have done.

Olmert firmly opposed irresponsible calls to invade Gaza, an operation certain to engage Israeli army in massive urban conflict with no chances of eradicating deep-rooted Hamas.

Despite the tremendous American pressure, Olmert did not dismantle any settlement or significant outpost. Under his leadership, settlements were enlarged and the number of outposts grew manifold.
Olmert presided over a robust economy.

He was a politician par excellence, intrigued and manipulated, gave promises to our enemies not meaning to fulfill them. He soothed Syria with peace negotiations after bombing it, and maintained perfect relations with the American administration even though refusing all of its demands de facto.
All the corruption allegations against him bore no charges, let alone convictions. His alleged financial misdoings were trivial and did not harm the country. Olmert had for long survived an incredible witch-hunt by some of the most corrupt Israeli politicians, including Barak. Stupid right-wingers and Jew-hating leftists joined forces against him, and misused police to that end.

Those who hunted down Olmert bear responsibility for bringing Livni or Mofaz to power.
Notable excerps from Olmert’s resignation speech are here.
Recent articles on Ehud Olmert: Olmert isn’t worse, Others are worse.

Thousands of Palestinians hurled stones at Israeli police during the funeral of an 11-year-old Arab in the village of Naalin. The Arab was killed during the yesterday’s riots where Palestinians protested erection of the security barrier near the Jewish town of Modiin Illit. The young Arab was cutting wire from the fence.
Palestinians want their own state, but not a demarcated border with Israel.
Naalin is considered a place loyal to Fatah.

After massive lobbying by German government, SPG Corporation received export clearance to construct three factories producing liquefied natural gas in Iran. The production would considerably boost Iran’s foreign trade.
Apparently, one Holocaust is not enough for Germans.

The Knesset forms a commission for rehabilitating Palestinian refugees in the West Bank, Lebanon, and elsewhere. Though technically meant to resettle the fourth-generation descendants of refugees, the commission establishes a dangerous precedent of Israel agreeing to deal with the refugee issue - something which we had vehemently denied for decades.
An Arab-led UNRWA almost forcibly keeps the Palestinians in refugee camps to heat up the problem instead of helping them to resettle and move on with their lives.

as announced after Ehud Barak’s meeting with American officials. If true, that may be a significant reason behind Olmert’s resignation.
The US Administration agreed to supply Israel with additional anti-ballistic missile defense systems. Given the time lag before their actual supply, the ABM are not intended to defend Israel against Iran’s reprisal. By the time the ABM are deployed in Israel, it would be already too late to attack Iran.