I think it is remarkable that the kindness and severity of God in election is designed to prompt worship -- Romans 11:33-36! It clearly displaces human effort and pride, but God aims beyond that to lead to worship. When it does not displace pride, it does not lead to worship.
It might be easiest to say that the Church displaces Israel completely as God's people, but I don't think this chapter leaves that open. I think there is a future for Israel.
The mystery that erupts into praise at the end of this chapter has to do with how God will use disobedience to bring about his grace. How the humbling of Israel was necessary so His grace would be evident.
I expect to hear the crescendo of thunder when I read, "Behold the kindness and severity of God." It is impossible for us to adequately combine those two and it is popular not to try! God must either be a benevolent grandfather or a harsh taskmaster, who can be easily rejected by the natural man.