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Even if this is "the beginning of the decline" for the lobby, the issues which the lobby championed are barely being tarnished here. The article itself says it, None of this challenges policy; it merely reflects a disagreement about how best to serve Israel’s interests.
It's not that any serious thought is being given as to whether or not the US should be backing Israel, or even questioning what exactly Israel is doing. It's tragic when an organization which issued its condemnation of a letter from church leaders calling for a review of whether US military aid to Israel was being used to support settlements and occupation and therefore violated US law.
is considered the more open, and "pro peace" side of a debate.