None of the alliances need LY. It really doesn't plug any holes. Getting to TLV from N. America, S. America (via Europe or N. America), is exceedingly easy w/o LY.
The most difficult places to get to from TLV is India and the rest of Asia. But via TLV's handful of flights, connections via IST, AMM, and that random KE flight to ICN, people seem to get by.
When Moshiach comes and there's peace everywhere and everyone loves each other, maybe someday there will be flights on Qatar, Etihad, and Emirates from TLV to DOH, AUH, and DXB. LY would finally have to compete with real airlines instead of being shielded from competition as a side effect of geopolitical realities.