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The Bible is clear that God considers a true Jew to be a person who has the same faith as Abraham did.

This is true up to a point. There is such a thing in this dispensation as a racial Jew (1Cor.10:32)

When the Jews rejected both the Kingdom of God and Heaven as offered by Christ, the Kingdom was given to a new 'nation' the Church (Matt.22:23) and the Kingdom of Heaven (the literal, physical reign of Christ on earth) held in waiting until the new 'mystery'(Eph.3:3) body(Eph.1:28) could be completed. (Rom.11:25)

When Christ returns He will write the law on their hearts so they will be both spiritual and racial Jews (Heb.8:8, Jer.31:31)

I agree with everything else you said. The best work on the subject is George N.Peters, The Theocratic Kingdom (3Vol.)