But what about Israel?
In Hebrew, 'name' means 'reputation'. God's name, Elohim אלהים; 'God was separated from men by ignorance' identifies the problem. He fixes that problem by revelation - Israel ישראל; 'man joined to God by revelation'.
- Jacob was given the reputation of being joined to God by revelation and when he does not act that way, he is still called Jacob. His children are called children of Jacob or children of Israel depending on their reputation.
Today, those who have a reputation of being joined to God by revelation; by his teaching, are Israel. They have not replaced anyone. They were called 'stars in the firmament' from the beginning. 'Israel' has always referred to those who have a reputation; a new name, given by God.