Not to derail this thread, but you might want to go back and reread Exodus chapter 19:
[3] And Moses went up unto God, and the LORD called unto him out of the mountain, saying, Thus shalt thou say to the house of Jacob, and tell the children of Israel;
[4] Ye have seen what I did unto the Egyptians, and how I bare you on eagles' wings, and brought you unto myself.
[5] Now therefore, IF ye will obey my voice indeed, and keep my covenant, THEN ye shall be a peculiar treasure unto me above all people: for all the earth is mine:
[6] And ye shall be unto me a kingdom of priests, and an holy nation. These are the words which thou shalt speak unto the children of Israel.
The possibility of Israel being "an holy nation" was an IF/THEN proposition from the beginning, and they rarely ever kept their end of the agreement.
Not only this, but this proposition DEFINITELY includes Gentiles.
For example, in direct correlation to this proposition, we read:
I Peter chapter 2
[2] As newborn babes, desire the sincere milk of the word, that ye may grow thereby:
[3] If so be ye have tasted that the Lord is gracious.
[4] To whom coming, as unto a living stone, disallowed indeed of men, but chosen of God, and precious,
[5] Ye also, as lively stones, are built up a spiritual house, an holy priesthood, to offer up spiritual sacrifices, acceptable to God by Jesus Christ.
[6] Wherefore also it is contained in the scripture, Behold, I lay in Sion a chief corner stone, elect, precious: and he that believeth on him shall not be confounded.
[7] Unto you therefore which believe he is precious: but unto them which be disobedient, the stone which the builders disallowed, the same is made the head of the corner,
[8] And a stone of stumbling, and a rock of offence, even to them which stumble at the word, being disobedient: whereunto also they were appointed.
[9] But ye are a chosen generation, a royal priesthood, an holy nation, a peculiar people; that ye should shew forth the praises of him who hath called you out of darkness into his marvellous light:
[10] Which in time past were not a people, but are now the people of God: which had not obtained mercy, but now have obtained mercy.
Immediately after rightly describing how many/most Israelites had stumbled over the "stone of stumbling, and rock of offense" by rejecting Christ, Peter said "but YE ARE a chosen generation, a royal priesthood, AN HOLY NATION", and this "ye", in context, definitely included GENTILE BELIEVERS IN CHRIST or those "which in time past were not a people, but are now the people of God: which had not obtained mercy, but now have obtained mercy".