> I would mention that there is basically zero separation between executive and legislative powers in Israel (to form the government to need to have majority in Knesset and you get to choose all the ministers).
That’s standard for the parliamentary system. Israel in that is fundamentally no different from the UK, Ireland, Canada, Australia, New Zealand, Spain, Italy, Germany, Austria, Belgium, the Netherlands, Norway, Sweden, Denmark, Greece - actually most countries in Europe (where parliamentary systems are the rule and semi-presidential systems such as France or Russia are the exception)
> Reducing the power of the only independent branch in this case is highly questionable to say the least
The UK government has done it before, many times. Most recent example I am aware of is the Dissolution and Calling of Parliament Act 2022, which stripped from the Courts the power to review the legality of prorogations or dissolutions of Parliament. In English law, this is called an “ouster clause”, and is nothing new - historically significant examples include the National Insurance (Industrial Injuries) Act 1946, and the Foreign Compensation Act 1950. In the US, the same idea is called “jurisdiction-stripping”; a famous example is the Antiterrorism and Effective Death Penalty Act of 1996
