Kadima isn't likely to be as strong as we all first thought it would be (the party was expected to win about 1/3 of all the seats in the parliament), but with its current leadership (Shimon Peres and Ehud Olmert), I believe it can still be the biggest party.

What will eventually happen? I don't think anyone knows. The country is still anticipating Sharon's recovery and when we know better what his condition is (granted, he won't be able to perform any role in the government), the fog will clear a bit.