There is more to fear from the passing of Sharon than political instability in Israel.
The upcoming elections in Gaza and the almost certain election of many of the candidates of Al Aqsa and Fatah mean that the area is going to become even more unstable.
When you put this together with the fact that the Palestinian Authority now controls a border crossing into Egypt and you have a recipe for disaster.
The leader of Iran declares that Israel should be obliterated, and all Jews relocated to a homeland in Europe. While Fatah declares that Israel should be obliterated too, but without the trouble of relocating the inhabitants. Nothing short of death will satisfy them as a solution to their Jewish problem.
I can foresee an alliance between Al Fatah and Iran with weapons supplied by them and imported via Egypt being fired into Israel from Gaza. I don't just mean little penny ante weapons like Katusha Missiles either.