It’s a simple distinction.
When a panel of judges selects one competitor to be the champion, the others don’t benefit from the selection. They go home losers. (Cue Queen music…)
But when a nation elects a new leader, the entire nation benefits. He or she passes legislation that they elected him to pass, etc.
The biblical doctrine of election is no different. Israel in general, and Christ in particular, are God’s Beloved, not in the sense of being (randomly or otherwise) ‘selected’ out to win a prize that benefits nobody else, but so that the nations of the earth would be blessed through them (Genesis 12:1-3). Never in the Bible is it said that Israel was chosen so that she could have exclusive rights to God and salvation. On the contrary, she was chosen to pass on blessing and salvation – in all its forms – to all.
It is like a fire or police squad, or a hospital staff. They are not self-serving teams, simply to make sexy firemen calendars, etc. They have a mission and a calling to serve their community. A doctor tells her smoking patient to change his ways not because “I’m a doctor and you can’t be”, not because “I am perfect in all ways”, but because she is a good and caring doctor. That’s enough metaphor for one post. :)