I agree with most of your post....except I believe that water baptism is a picture of what God had done on the inside. I believe that when Jesus was baptized...this was the cross roads where water baptizm and spiritual baptism came together. Water was a picture before of what the Holy Spirit would do later. Jesus came to fulfill the law...every picture of the laws and rituals point to the redemption work of Jesus Christ. Jesus was already born of the Spirit....When he was baptized this is when the Holy Spirit came upon him to empower him for His ministy. I believe we are born into the kingdom when we by faith except Jesus as our Lord and Savior(this is our spiritual birth). We are learning to walk by the power of Spirit(This is the Spiritual kingdom). I am still learning the process of how the Holy Spirit works in our lives to bring about the change on the inside.