Yamina, in its position as kingmaker due to the way things played out, has been able to negotiate from a position of strength, as neither side has a realistic coalition without them (and maybe not even with them). Reportedly this has led Bennett to demand the appointment of Prime Minister, maybe even first, in a rotation arrangement. While Netanyahu initially rejected even the thought of such a possibility saying that Israel has had enough of rotation arrangements, the reports now have him considering it and negotiating the possibilities.

The news last night reported that Netanyahu's coalition partners are now rejecting this option. If true, this might throw a wrench into the entire thing, but that remains to be seen. 

Supposedly Aryeh Deri has said it is inconceivable that the head of a party holding 7 mandates should be appointed Prime Minister. Additionally, Deri, and maybe others, said that there is no reason Bennett with 7 seats should be given a turn as Prime Minister in a rotation and we should not  - considering we are the same size or even bigger. If Bennett gets to be Prime Minister despite the size of his party, we want turns as well.

sources: JPost, Hamechadesh 

And honestly Deri is right. 

The main craziness of the Israeli electoral system has always been that small parties wield too much power, as they become needed for a coalition. 

The reason Netanyahu, and Lapid, is negotiating with Bennett and not with Deri or Gafni or Gantz or anyone else over who will be Prime Minister and when is because Deri committed to Netanyahu during the elections and has no other play. Not because Deri/Litzman/Smotritch/Lieberman/Gantz/etc  are less worthy than Bennett. Bennett kept his options open and both Netanyahu and Lapid need him, so they have to pay a high price to bring him in. Deri put his cards on the table from day one, so has no play now. This is why Bennett has been termed kingmaker, and Deri has not been.

But Deri is right. It is ridiculous that Bennett, at the size of his party, should be able to become Prime Minister. This is a prime example of why electoral reform is needed, and why so many politicians have promised it over the years but then backed down after elections.