Then they would not have dissolved and there would not be a new election, you are just misrepresenting their system.
Yeah, you really don’t win the election unless you get 51% of the seats in the parliament. Otherwise, you are just the largest party.
Winning the election avoids what just happened.
The head of government in a parliamentary system is not directly elected by the people. The party that has the most seats must form a government but there is a minimum number of seats required without forcing an election.
In this case Likud failed to build a large enough coalition to take control of the chamber. Thus it goes to a new election.