As a number of bloggers and pundits have already pointed out, there is a good possibility that we can still foil Kadima.

A Labor/Perertz led coalition with most of the smaller parties can easily block Kadima’s entrance to the government. Not only that, but there is less of a problem of portfolio greed as most of the parties have just a single issue or two that is really important to them and they want the same results anyway.

One viable Coalition configuration could easily be:

Avoda 20
...(Prime Minister, Foreign, Finance, Industry-Trade, Labor, Education)
Shas 13
...(Interior, Justice, Construction&Housing)
Lieberman 12
...(Defense, Security, Transportation)
Likud 11
...(Agriculture, Communications)
Gimlaim 7
...(Health)
UTJ 6
...(Deputy Minister - they don't like taking full responsibility)
Meretz 4
...(Environment)

Total 73 seats.

Everyone gets what is important to them – either a good seat, or at least the knowledge that this will forever destroy Kadima.

The Likud might prefer only the Justice ministry to start going after the Kadima people, and Liebrrman may want it also. Meretz would obviously want Education, but the other coalition partners would never agree, so it would stay with Labor.

If only Amir Peretz has the guts to try this.