Is Israel still God's covenant people even though they are in unbelief?
Yes. Though Israel is in unbelief and set aside as a nation, they remain God's covenant people. Their secular government is not righteous; they are under the god of this world, but God is not through with them. He will yet pick up where He left off and fulfill His covenant promises.
Les teaches that the little nation in the east is still Israel, which one day will be the apple of God's eye. Right now they are not because they are in unbelief. He warns not to expect the government in Jerusalem to be godly or more righteous than any other government; they are secular and just as much under the control of the god of this world as Washington D.C. But there is an exception: they are still God's covenant people. Right now they have been set aside and are spiritually blinded for the most part as a nation, but God is not through with them. He will pick up where He left off. Les says it is not appropriate to put Israel under this covenant promise tonight, but they will one day enjoy it, as it is yet future.