http://en.wikipedia.org/wiki/2011–12_Israeli_Premier_League#Structural_changes says: "There are three structural changes: There will be no middle playoff, but only top and bottom playoff which will be contested by eight teams each, according to their regular season placement. each team will play 37 matches. The points will no longer be halved after the regular season. There will be three relegated teams, and only one promoted team from Liga Leumit." Every club will now play 37 games. Last season the middle four clubs played 33 games and everybody else played 35. By not halving the regular season points, the regular season becomes more important relative to the playoffs. Some people here complained that the talent would be diluted when the top level expanded from 12 clubs to 16 clubs. Based on the last change the 2012-2012 Premier League will have 14 clubs. That will affect the structure of the Toto Cup for the top level which currently has 4 groups of 4.
It did get diluted. Just take a look at who the Liga Leumit has brought up. Aside from Itzik Cohen, who else has really stuck out? Even Ohad Kadusi can't replicate his skills in Liga Al.
I don't know. We also got Steven Cohen via Hapoel Ra'anana's promotion. There were also quite a few upsets involving those promoted teams that had a direct effect on Maccabi Haifa not winning the championship two seasons ago.