Iron Dome once again failed?
To put simply yes.
To get more technical and from a military perspective, Iron Dome is more of a short range defense system to counter rockets and slow projectiles.
David's Sling and Arrow are the main anti-ballistic missile defense systems that tried and failed last night.
There is still no official statement about the type of the weapons used but from the videos I can guess these were all very
low tier munitions focusing on an "overwhelming strategy" instead of "dominating" one. I can also say that the videos show Israeli defense systems tried defending as much as they could and countered some of the incoming projectiles but they got overwhelmed very easily and quickly. Basically they shot down what
they were supposed to shoot down and as they ran out of defensive missiles, the important projectiles arrived and easily hit their targets.
In terms of Vertical Escalation doctrine, this strategy by Iran makes perfect sense. To use low tier munitions that can only be categorized as "mussel flexing" while keeping the cost low. The higher tier weapons are kept for next phases of the Vertical Escalation.
In this strategy the side with superior firepower (ie. Iran) launched 2-3 waves of ballistic missile, cruise missile and drones at an adversary with an advanced air defense (10 countries are said to help in that defense last night, that includes US, UK and France). The low-low tier ones are meant to make the ABM systems busy and exhaust their defensive missile supplies as higher-low tier ones are meant to pass the then empty ABM system and hit their targets without any problems.
For example Shahed-136 drones that was used last night is very low tier Iranian loitering munition (at least 12 generations old) and is only used to busy the air defenses while the swarm itself can locate them and one is enough to dive and destroy its batteries and radars.
By the way some sources are reporting that defending Israel last night has cost United States over a billion dollar!!! For comparison: a single unit of Shahed-136 costs about ten grands