Someone please tell me that this is not an official Vatican position.
This is not an official Vatican position. It is the statement of a Synod of Catholic Bishops from the Middle East, meeting in the Vatican, at the invitation of the Pope, who did not participate in or control its deliberations or proclaim its results. These Arab Bishops have tended to lean against Israel over the decades, in part for the protection of their flocks.
My information from someone close to this "Not the chosen people" thing is that the Vatican recognizes that it is not well represented by such a statement and is working on a "clarification."
ML/NJ