The approach to God's dealings with Israel can be approached in a number of ways. The best is most probably ...
1. Origin
1) From Adam to Noah the earth was one nation and one language. From Babel onward, because God divided them, we have THE NATIONS. They are offspring of Adam via Noah.
2) About 500 years after the flood, God called one man, a Syrian, and changed his name to Abraham, which means "father of many nations". From his various offspring God chose one, Isaac, and from him made a new NATION called Israel. From Jacob onward we have THE NATIONS and THE NATION OF ISRAEL They are offspring of Adam via Noah via Isaac
3) From resurrection day, when our Lord breathed His Spirit into His disciples (Jn.20.22), a New Man was born. Ephesians 2:14–15 reads;
14 For He Himself is our peace, who has made both one, and has broken down the middle wall of separation, 15 having abolished in His flesh the enmity, that is, the law of commandments contained in ordinances, so as to create in Himself one new man from the two, thus making peace.
In this scripture a number of things are revealed;
God has created a "a New Man"
This New Man is made from "THE TWO". The TWO are (i) THE NATIONS above in point 1, and (ii) THE NATION of Israel in point 2 above.
The second one, Israel, has the Law of Moses. This Law forbade Israel to have relations with the NATIONS. Thus it created "ENMITY" and DIVISION. To combat this, the Law FOR MEMBERS of the NEW MAN is abolished by Christ's death.
This New Man is born to the Holy Spirit - not mankind, making it NEW and UNIQUE
This New Man has no human ETHNICITY (Gal.3:28).
The members of the New Man are completely new and the old and past is GONE (2nd Cor.5:17)
The members of the New Man had their ORIGIN in Christ (Jn.12:24)
2. Bible History
The Romans, one of THE NATIONS, ruled Israel in 65 AD. The NATION ISRAEL hated and persecuted the NEW MAN. Acts of the Apostles gives THREE ENTITIES. Later, after 70 AD, the NATION of Rome dispersed the NATION of Israel and persecuted the NEW MAN. These THREE ENTITIES remain to this day. Today, ROME wears priests clothes, ISRAEL hates Jesus Christ, and the NEW MAN is persecuted for loving Jesus Christ. In the history of the Bible THREE PEOPLES ARE SHOWN.
3. The Olive Tree of Romans 11
2nd Peter 1:20 says that we may not interpret the Bible privately. That is, the Bible must be interpreted by the Bible. A Tree in the Bible in parable is a KING and his KINGDOM (Judges 9, Daniel 2, Ezekiel 31). Thus, the Olive Tree cannot depict the Church. It depicts a King and His Kingdom. (1) The Root is Holy. This can only be Jesus Christ - the King. (2) The natural Branches are presently in UNBELIEF and are cut out. When the ties of the Gentiles are full, that it, when Christ defeats the Gentiles at Armageddon, the natural branches will be grated in again - not into the Church, but the Kingdom. Christ will live in Jerusalem and so Israel will be His host nation. (3) The wild branches are grafted in because of faith. Their position is precarious for they may be cut out for ill behavior. When the times of the Gentiles are full, Christ will be (1) King of Israel, be (2) King of kings (those of the Church who prove worthy of it, and (3) King of the Nations. The Olive Tree is thus fulfilled with THREE entities - a KINGDOM - and ISRAEL is a SEPARATE PART OF IT.
4. New Jerusalem
When all men have been resurrected and judged by the time of the White Throne (Rev.20), God will "RENEW" (lit. Gk.) the Heavens and the Earth. Jerusalem was for RULING Israel and the home of the KING. New Jerusalem is the HOME of the KING of kings. (1) The WALLS are the Church. (2) The GATES are Israel. (3) And without the City are THE NATIONS. Even in eternity future the three entities remain separate - THE NATIONS, ISRAEL, THE CHURCH.
God bless.