And why does it matter? 1 Peter 2:9 Identifies true Israel. This is a very intriguing passage and reads thusly… “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;”
Bible reference books indicate that Peter was addressing this mostly to so-called “Gentiles.” Interestingly, if one will check the cross-references in many Bibles, it will direct one to Deut. 4:20 & 10:15, which speak of Israel, not some non-Israelite group. The Thompson Chain-Reference Bible on this verse uses the guide #2725 for “chosen”, which in turn refers to Deut. 7:6 which says:
“For thou art an holy people unto Yahweh thy Elohim: Yahweh thy Elohim hath chosen thee to be a special people unto himself, above all people that are upon the face of the earth.”
Therefore, the so-called “Gentiles” of 1 Peter 2:9 are of the Lost Tribes of the House of Israel which were formerly divorced, but now purchased back by Messiah’s blood.