In Genesis 21:12 Abraham was told; "For in Isaac shall thy seed be called", so we can see by this that only the spirit was counted as the seed of Abraham. Hagar, the mother of Ishmael, represents the mind of the flesh, while Sarah, Abraham's wife and the mother of Isaac, represents the mind of the spirit.
Romans 2:28,29 shows that only the spiritual Jew is counted as the real Jew, the seed of Abraham, and the chosen of God. Gods chosen people are those who are of the Spirit. Jesus said in John 4:24 that God is a spirit, and 1st Samuel 16:7 says that God looks on the heart, not on the outward appearance, and again, Romans 2:28 states that the real Jew is not the one who is a Jew outward in the flesh.
Now, there are those who think that the spirit can do no wrong, but the mind of the spirit can get as confused and nasty as the mind of the flesh can. Spiritual pride is a very good example of this, and Gal. 5:17 says that the spirit lusteth against the flesh, and James 4:5 says that the spirit that dwells in us lusteth to envy.
There is the "literal" Jew, and the "spiritual" Jew. No explanation of the "literal" Jew is needed, for everyone knows of the literal physical Jew, who is a Jew outwardly. In modern day Christianity, most people believe that the "spiritual" Jew is anyone who is a Christian, but that the TRUE Jews are still the literal people with the Jewish names/DNA/bloodline, it is sad to see how Christians could be so blinded. To see where this line of thinking will take you, skip over to another section under heresies titled Holy Racism.
It was the spirit (Isaac) which was offered to God by Abraham, and not the flesh.
Now, if Isaac represents the spirit, and in Isaac was the seed to be called, then also in allegorical terms, all of the Jews being led by Moses in the wilderness of sin represented the spirit.
We see proof of more of this figurative language, according to 1st Corinthians 10:1-4, "they were all baptized by the sea (water), by the cloud (spirit), they all ate the spiritual meat, and they all drank from that Spiritual Rock which followed them, and THAT ROCK WAS CHRIST" How can such blatant and plain-as-day scriptures be overlooked? How can people claim to be spiritually enlightened and knowledgeable in scriptures, but yet have never thought about Galatians 4?
They may have been physical people, but the meaning of what transpired about them was concerning, or referring to the spirit. This represents the spirit being led out of bondage to the flesh by our hope in Christ Jesus, the word of the Lord in each one of us.
If anyone imagines that the literal man Moses lost out, then just remember who it was that appeared with Jesus on the mountain when Jesus was transfigured (Matt.17:3 and Mark 9:4).