Judaism would certainly have survived, but Judea would have been less influential in religious developments going forward, both because the institution of the nasi might cease without ben Zakkai as a recognized authority figure and because several of the leading tannaim were ben Zakkai's students. Ben Zakkai taught Joshua ben Hananiah, for instance, and ben Hananiah was one of Rabbi Akiva's teachers, so no Yavneh academy might mean no Akiva or (if he still studies under Eleazar) at least a different Akiva. And Akiva's absence would affect, or possibly even forestall, the revolt of 132-35.
What we might see is a more politically and religiously disorganized Jewish community in Judea, with the centers of scholarship passing to the diaspora somewhat earlier than OTL and Babylonia possibly having even more prominence - would there even be a Talmud Yerushalmi ITTL?