Bibi, as he is known by all,  is important beyond Israel, too, and not only because he speaks in perfect soundbites in English and stands tall in today's chaotic middle east. He matters because he embodied the politics of muscular nationalism.

我觉得这个句子没有错误。

1 as he is known by all并不是众所周知的意思，而是解释Bibi这个人的名字，即人们是通过这个名字而认知他的。所以不宜改为 as is known to all.

2 and 并不多余，and并列二个状语，介词短语beyond Isreal和not only because从句。（请注意下一句：He matters (= is important) because he embodied...

翻译：

Bibi （人们都这样称呼他）的重要性不限于以色列，而且不仅仅是因为他的英语发音完美，在混乱的中东地区屹立不倒。他之所以重要还因为他体现了强硬民族主义政策。