Israel decided that "all out war" was probably not a good idea.
I don't think this has any effect, whatsoever, on the Iranian nuclear bomb situation. Why would you think so? Or, exactly how is this "hurting" the situation?
I think this should be looked at simply from the Israeli-Iranian sides, not from American or anti-nuclear bomb perspectives. I disagree that this hurts any situation. I believe, looking at it only from...
Israel: "We killed an architect of the Oct 7th attack on us. It was an Iranian IRGC General and his team in a military annex to their embassy in Syria. They responded with a limited attack on our territory which we succesfully defended. We also will not allow an attack on our territory without a response. We have responded, in a limited manner. the offramp for both our countries to de-escalate is still there. As how the Americans say: 'The ball is now in your court'. "
Iran: "We attacked Israel (limited) in response to the attack on our embassy/IRGC general. Israel attacked us in response, on our home territory? We don't know what you are talking about... we shot down a few small birds that were hovering over our military bases... nothing to see here. We consider the matter closed."
This is the only thing that matters right now. The viewpoints of these two countries, only, towards each other. And Israel's attack was much more limited than what it first might have thought to have been (including me), which is allowing an off-ramp for both of these countries to stand down.
That is the best, immediate, outcome.
Iran's nuclear capabilities are a separate issue, IMO, to be dealt with on a separate basis.