"One's identity as an Israelite is determined by whether or not God has graced you with his spirit. It doesn't matter if you're a physical Israelite or not.
Likewise, we should be careful of confusing the Scriptural nation of Israel as a body of His people with the identity of the country called Israel which we still have our consulate in TelAviv (go figure).
Very true. Certainly modern day Israel and the biblical nation of Israel should not be confused. But it is important to understand that many of those who identify themselves as Jews who live in modern Israel are most likely physical Israelites descended primarily from the tribe of Judah.