Partially true. The Abrahamic Covenant is meeting its fulfillment in Christ, and that fulfillment will culminate in the establishment of the Kingdom of Israel by the Messiah who will reign from the city of Jerusalem, as promised. It is not just past tense as Preterists are addicted to but past, present, and future.
the problem with this, is that the city of Jerusalem, as described in Ezekiel, IS BIGGER THAN THE ENTIRE LAND OF PALESTINE, and the Temple is bigger than the entire city of Jerusalem. NO ONE takes the prophecy "literally." NO ONE. Not dispensationalists, not covenant theologians, NO ONE. Historical Reformed theology says "this is a pictorial way of doing what the OT often does, which is use figurative language to describe the glory of the coming age of Christ, which finds its final expression in the new heavans and new earth." This makes far more sense to me than insisting the it refers to "literal" Jerusalem and ignoring the fact that the spatial dimensions in the (long) description are simply geographically untenable.