You have to take both of these Scriptures into account:
1) "He who is eight days old among you shall be circumcised. Every male throughout your generations, whether born in your house or bought with your money from any foreigner who is not of your offspring, both he who is born in your house and he who is bought with your money, shall surely be circumcised. So shall my covenant be in your flesh an everlasting covenant." (Genesis 17:12-13)
2) "In Him also you were circumcised with a circumcision made without hands, by putting off the body of the flesh, by the circumcision of Christ, having been buried with him in baptism, in which you were also raised with him through faith in the powerful working of God, Who raised him from the dead." (Colossions 2:11-12)
As I have said, water baptism has replaced circumcision as the sign and seal of the covenant ~ and you at least tentatively agreed ~ but the administration of it with regard to when in a person's life it can and should be done has not changed. And of course it's no longer just for male children now but female children also.
No we are not Israel. We are the body of christ.
Eph. 2:
11 Wherefore remember, that ye being in time past Gentiles in the flesh, who are called Uncircumcision by that which is called the Circumcision in the flesh made by hands;
12 That at that time ye were without Christ, being aliens from the commonwealth of Israel, and strangers from the covenants of promise, having no hope, and without God in the world:
13 But now in Christ Jesus ye who sometimes were far off are made nigh by the blood of Christ.
14 For he is our peace, who hath made both one, and hath broken down the middle wall of partition between us;
15 Having abolished in his flesh the enmity, even the law of commandments contained in ordinances; for to make in himself of twain one new man, so making peace;
16 And that he might reconcile both unto God in one body by the cross, having slain the enmity thereby:
17 And came and preached peace to you which were afar off, and to them that were nigh.
Romans 11
King James Version
11 I say then, Hath God cast away his people? God forbid. For I also am an Israelite, of the seed of Abraham, of the tribe of Benjamin.
2 God hath not cast away his people which he foreknew. Wot ye not what the scripture saith of Elias? how he maketh intercession to God against Israel saying,
3 Lord, they have killed thy prophets, and digged down thine altars; and I am left alone, and they seek my life.
4 But what saith the answer of God unto him? I have reserved to myself seven thousand men, who have not bowed the knee to the image of Baal.
5 Even so then at this present time also there is a remnant according to the election of grace.
6 And if by grace, then is it no more of works: otherwise grace is no more grace. But if it be of works, then it is no more grace: otherwise work is no more work.
7 What then? Israel hath not obtained that which he seeketh for; but the election hath obtained it, and the rest were blinded.
8 (According as it is written, God hath given them the spirit of slumber, eyes that they should not see, and ears that they should not hear;) unto this day.
9 And David saith, Let their table be made a snare, and a trap, and a stumblingblock, and a recompence unto them:
10 Let their eyes be darkened, that they may not see, and bow down their back alway.
11 I say then, Have they stumbled that they should fall? God forbid: but rather through their fall salvation is come unto the Gentiles, for to provoke them to jealousy.
12 Now if the fall of them be the riches of the world, and the diminishing of them the riches of the Gentiles; how much more their fulness?
13 For I speak to you Gentiles, inasmuch as I am the apostle of the Gentiles, I magnify mine office:
14 If by any means I may provoke to emulation them which are my flesh, and might save some of them.
15 For if the casting away of them be the reconciling of the world, what shall the receiving of them be, but life from the dead?
16 For if the firstfruit be holy, the lump is also holy: and if the root be holy, so are the branches.
17 And if some of the branches be broken off, and thou, being a wild olive tree, wert grafted in among them, and with them partakest of the root and fatness of the olive tree;
18 Boast not against the branches. But if thou boast, thou bearest not the root, but the root thee.
19 Thou wilt say then, The branches were broken off, that I might be grafted in.
20 Well; because of unbelief they were broken off, and thou standest by faith. Be not highminded, but fear:
21 For if God spared not the natural branches, take heed lest he also spare not thee.
22 Behold therefore the goodness and severity of God: on them which fell, severity; but toward thee, goodness, if thou continue in his goodness: otherwise thou also shalt be cut off.
23 And they also, if they abide not still in unbelief, shall be grafted in: for God is able to graft them in again.
24 For if thou wert cut out of the olive tree which is wild by nature, and wert grafted contrary to nature into a good olive tree: how much more shall these, which be the natural branches, be grafted into their own olive tree?
25 For I would not, brethren, that ye should be ignorant of this mystery, lest ye should be wise in your own conceits; that blindness in part is happened to Israel, until the fulness of the Gentiles be come in.
26 And so all Israel shall be saved: as it is written, There shall come out of Sion the Deliverer, and shall turn away ungodliness from Jacob:
27 For this is my covenant unto them, when I shall take away their sins.
28 As concerning the gospel, they are enemies for your sakes: but as touching the election, they are beloved for the father's sakes.
29 For the gifts and calling of God are without repentance.
Saved Israel is Israel of God. They are one body with saved Gentiles. Gentiles are not Israel in the church.
Baptism replaces nothing. It is an ordinance of the church. The church has no covenant with god but are mere beneficiaries of the New Covenant God made with Israel as Paulo declared in romans 11.
