October 7th and its following and still ongoing war has been a massive strategic loss for Israel and a massive victory for the Muslims. Israel because of its overwhelming superiority in Air Force and Air defence was always expected to Bomb the hell out of all of its neighbours. So, I don't think anyone expected a different outcome after Oct 7. This was Israel's 911 times 10. This was a massive humiliation to see "Mowed grass" as Israel calls Hamas to do a surprise attack like that and kill thousands.
It was clear to everyone with a bit of knowledge on the region that the only way for Palestinians and Arab Muslims in general to win against Israel is to slowly bleed Israel to death by thousand cuts. Make Israel unlivable, make Jews lose faith in having any kind of security and prosperity in Israel and thus make them migrate back to Europe.
October 7th and the subsequent War has made most Israelis fear for their safety like never before. They were subject to massive Missile attacks, Drone attacks and Northern Israel pretty much became evacuated. This Psychological Trauma is the real strategic victory for the Muslims.
As for the expected massive retaliation from Israel against the Muslim Neighbours, well this was completely expected. Yes, Israel would bomb the hell out of Gaza as they have done before, Yes they would kill thousands, as they have done before. But Muslims always knew that they have to pay for this war with blood. As long as Gazans do not all die or do not get forced to migrate out, that is a victory. As long as there is "grass" in the lawn, it will always grow back. Hamas losing its fighters? Easily replinishable. Hezbollah losing its fighters? Also totally nothing new about it and also totally replacable.
As for Iran, no one ever expected that Iran attack Israel with 100s of Missiles and get away with it, but they did. Israel's response to Iran's attacks has been very underwhelming. The fact Israel can do covert killing in Iran is nothing new. But Israel couldn't even Bomb one city in Iran.
Iran losing its Alawaite ally in Syria is a loss for them true, but losing to Al Qaeda offshoot with even more Anti-Israel fervor is not a victory for Israel and US.
The long term Trajectory of the region is still the same, Muslims massively out producing Jews, Muslims becoming richer more sophisticated, more militarily capable and the West slowly weakening and losing influence in the middle east due to the rise of China. Over the long term, Israel is toast. This was just one more battle that they lost with many more to come.