I agree with Health. I’ve heard him speak as well, and he doesn’t come across as a fantasist. And I think he has said he wants to end Chareidi, not Orthodox monopoly. He does wish to introduce more of a cross section of Orthodox Rabanim into the Rabanut, and there are plenty of talmidei chachomim who fit that bill, which while eroding chareidi monopolies in some areas, maintains a Torah standard. He may not be a friend of the religious, but I don’t think he cares to make himself an enemy, though that might be pinned on him by others.
Any responsible family checks yichus on its own in any case, so introducing “civil” marriages for the circumstances Health outlined may not be as damaging as you think.
The danger for chareidi parties is that they may have backed themselves into a corner by putting their red lines out there very early. Now Bibi can create a solid center-right coalition of 68 between Yesh Atid, Likud Beitenu, Yisrael Beitenu, Hatnua, and maybe Kadima’s 2. If you were a politician in his shoes, wouldn’t you rather meet the demands of 3 or 4 partners rather than 6 or 7? Where does that leave Shas, and where does it leave Degel? Sitting with Shelly and Zehava in opposition, I think, and that’s not a good place to be when every other party except the Arabs thinks differently about “sharing the burden”.