Interestingly, I was just reading about this:
A distinctive feature of dispensationalism is that the millennial kingdom is fundamentally Jewish in character, even to the point of the rebuilding of the temple, setting up David's tabernacle, re-instituting the Jewish sacrificial system, and exalting the Jews over elect Gentiles. "This is the point: once Israel is restored to the place of blessing and the tabernacle of David is rebuilt, then will follow the third phase in the plan of God. That period will be the time of the millennium, when the nations will indeed by converted and ruled over by Christ."35 We should not regard this as a deviant opinion of a pair of unrepresentative dispensational authors. On the contrary, it is a representative statement of the dispensational system. Dispensationalism surprisingly teaches such things as those found in the following citations:
"God has two distinct purposes — one for Israel and one for the Church."36
"Israel, regathered and turned to the Lord in salvation, will be exalted, blessed, and favored through this period."37
"The Gentiles will be Israel's servants during that age. The nations which
usurped authority over Israel in past ages find that downtrodden people exalted and themselves in subjection in their kingdom.” And these are not unsaved Gentiles: "The Gentiles that are in the millennium will have experienced conversion prior to admission."38
"The redeemed living nation of Israel, regenerated and re-gathered to the land will be head over all the nations of the earth. So he exalts them above the Gentile nations. On the lowest level there are the saved, living, Gentile nations.” 39
"God will keep his original promises to the fathers and will one day convert and place Israel as the head of the nations."40
"Israel will be a glorious nation, protected from her enemies, exalted above the Gentiles…” "In contrast to the present church age in which Jew and Gentile are on an equal plane of privilege, the millennium is clearly a period of time in which Israel is in prominence and blessing. Israel as a nation will be exalted."41
35. H. Wayne House and Thomas D. Ice, Dominion Theology: Blessing or Curse? (Portland, OR: Multnomah, 1988), p. 169.
36. Charles C. Ryrie, Dispensationalism Today (Chicago: Moody Press, 1965), p. 95.
37. Charles C. Ryrie, The Basis of the Premillennial Faith (Neptune, NJ: Loizeaux Bros., 1953), p. 149.
38. J. Dwight Pentecost, Things to Come: A Case Study in Biblical Eschatology (Grand Rapids: Zondervan, 1958), p. 508.
39. Herman Hoyt, “Dispensational Premillennialism,"The Meaning of the Millenniurn: Four Views, Robert G. Clouse, ed. (Downer's Grove, IL: Inter-Varsity Press, 1977), p. 81.
40. House and Ice, Dominion Theology, p. 175.
41. John F. Walvoord, The Millennial Kingdom (Grand Rapids: Zondervan, 1959), pp. 136, 302-303.