the new israel?

I've been thinking a lot about this idea we talked about in Nick Perrin's Biblical Theology class way back when. Nick led us through the Scriptures as this amazing thematic narrative where we saw that the church is the new israel. I totally bought it and never realized this was hugely controversial until I was at this huge well-respected church around here who makes a point, of not only preaching, but putting on their website belief statement that the church most certainly is NOT the new Israel and that God's chosen people are and will always remain the Jews.

It seems, as I've been reading and thinking about this, people come up with:
a. Israel is the new and old Israel
b. The church is the new Israel
c. The church was grafted into the existing Israel

I had never thought about the huge implications of this belief--I'm sure the US supports Israel for largely political reasons, but if people don't believe the Jews are the new Israel, this means that there isn't necessarily an ethical obligation to support the Jews over, say, the Palestinians (woah).

I've been reading up on Israel and Palestine lately...these crazy events like the Disengagement Plan and then the Hamaas taking leadership and the walls built. I have a friend who's moving to Israel too, which makes it all somewhat more real and more pressing. I have a sense, maybe a hope, that I might get over there eventually. Not necessarily to walk the places Jesus walked, but to be with the people.