Why is it that so many Christians and government leaders place so much importance not only on the land of Israel (especially during the end times) but on the Jews as being God's people (as in the Old Testament)? Some even believe that we will be blessed if we help/align with the Jews. Seems to me that the land is of little importance during Armageddon, since it will be a spiritual battle. God's people to me are ones who believe in Jesus as their personal Savior, ask for forgiveness and repent of known sins. By faith, by God's grace, we are saved, and not by any works or an attempt to keep the law. This would not include Jews (Judaism). Only 2% currently are Christians in Israel. Am I correct on this?
What can often account for people placing great importance on the nation of Israel today is a wrong understanding of biblical prophecy. Dispensational premillennialism imagines a special role for the modern nation of Israel in the end times. The Bible does not address the modern nation of Israel.
When the Bible states that “…all Israel will be saved” (Romans 11:26), it is clear from the context (Romans 9:6-8) that we are not to expect a mass conversion of the Jews prior to the Last Day. No, the “Israel” of Romans 11:26 speaks of people who have the faith of God’s Old Testament people: faith that was centered in the promised Messiah. That Messiah is Jesus, the Christ.
Dispensational premillennialism requires a greater explanation than I can provide in this response to you. You will find a lengthy treatment of that subject in End Times: Jesus is Coming Soon. Your church library may have a copy of that book. It is also available from Northwestern Publishing House.
As you noted, people enjoy salvation “by grace, through faith.” God the Holy Spirit works saving faith in people through the means of grace. We do not decide to believe or choose to follow Jesus. Christian faith is God’s gift to people (Ephesians 2:9).