Tom, for years I also had not known what to think about Israel in Palestine today. I left my Scofield Dispensationalism 30-40 years ago, but I too wondered about Israel. If those men of God who believe there is to come a mass conversion of Jews in the future are correct, maybe God put them back into Palestine so it would be so obvious and visible. But over time I came to a view such as is taught in the commentary of Peter Pett, on Romans 11:14ff. That commentary is found on a very fine commentary site: http://www.studylight.org/commentaries/
Various things came together for me, such as my Dispensationalist sister sending me a couple of DVDs by a Rabbi Jonathan Cahn, a supposed Messianic Jew. I was greatly disturbed that she swallowed that garbage so I intensified my study. It was pointed out by someone online that the word "church" was put into the KJV by insistence of the King. Literally, in the YLT you can't find the word "church" anywhere in the Bible. From this view point, the Old Covenant people were the assembly or congregation of God; and, the New Covenant people are also the assembly or congregation of God. The New Covenant believers, elect Jew and elect Gentile make up the assembly of God today. We Gentiles were grafted into the congregation or assembly of God so there is just the one true Israel, all believers, Jew and Gentile. I see the assembly of Jews and Gentiles today as a continuation of God's people from the Old Testament. That is roughly how I am viewing this matter today, but am always open to refining my understanding. I view the eschatological viewpoints as theory or theological constructions so I am not dogmatic about historic pre-mil, a-mil or post-mil. I see Jesus telling us that on "the last day" is the resurrection and judgment. No signs are given to alert us when the last day will happen as were given to the disciples about the destruction of Jerusalem. I tend toward a post-mil view much like taught by J. Marcellus Kik in his book "An Eschatology of Victory". I accept as ringing true, David Scott Clark's commentary on Revelation which is preterist and post-mil, but I am partial preterist. I find my view of the character of the 1000 years is much like John Gill's view of 'the spiritual reign of Christ'. Yet, Gill is a historic premil as can be seen in his writings.
The Spiritual Reign of Christ - http://www.gracesermons.com/hisbygrace2/bk5-ch14.html
The Personal Reign of Christ on the New Earth for 1000 years - http://www.gracesermons.com/hisbygrace2/bk7-ch8.html
Sorry for being so verbose, but sometimes I seem to be keyed up and on a tear.