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It will a noisy. The hilonim believe that at their command the yeshiva boys will toss their gemaras, become good soliders and return with kippah srugahs- they will be disappointed. The loss of yeshiva stipends will cause come belt tightening. The Religious Zionists might collapse as a political movement and find themselves abosrbed by an increasingly religious Likud, and it will take some getting used for the Hareidim to realize they are now a left wing party (which they always were in economic terms, as they leaders have been pointing out).
But in the end, the frum community will be able to learn in peace, and those who want to be baal ha-battim will be able to work on the books which will radically improve their income. And getting rid of conscription will seriously improve the Israeli military.