The appointment of Rav Eyal Karim to the position of Chief Rabbi of the IDF is now final and moving forward. The Supreme Court has withdrawn its opposition to the appointment because it has become clear that Rav Karim's statements were misquoted as he submitted a statement saying that he had never said what he had been quoted as having said.
source: Kikar

This, in my opinion, does not change at all what I said the other day about the case. They are not withdrawing their opposition because they feel they overstepped or because they realize that a controversial statement is not grounds or anything like that, but because they now believe he never said what they don't approve of. Meaning, they still do not allow freedom of speech and do not approve of rabbonim paskening certain ways, but in this case he only said things they approve of they can now approve of his appointment.