Did you read the remarks that MacArthur made in his message? He said clearly that there are no allegories in Scripture. He is an authority on dispensationalism, being a dispensationalist himself. I have heard others say the same thing.
So, what you are telling me is that a recognized authority on dispensationalism doesn't know what he's talking about? If so, I agree with you
For everyone else, I recommend that you look at the link I provided and see John MacArthur's explicit statement that there are no allegories in Scripture.
By the way his remark is not unique. Other dispensationalists accuse others of interpreting Scripture figuratively or allegorical. It is a COMMON complaint.
Besides this, there are many prophecies that are expressed in figurative language that are fulfilled literally, and there are prophecies concerning Israel that are fulfilled in spiritual Israel, the Church. Israel was a shadow or type of the Church. It's pretty plain to me.
Before the charge of "replacement theology" is leveled, I would like to make it known that I believe in "fulfillment theology". Some prophecies regarding Israel were fulfilled in Christ, who is the True Israel, and some are fulfilled in the Church.
Besides this, every believer is joined to Jesus and is a spiritual Israelite in God's sight. This is part of the doctrine of union with Christ.
The believer is joined to Jesus. Jesus is a spiritual descendant of Abraham. Therefore, the believer receives all that is promised to Jesus, the descendant of Abraham. Believers collectively compose the church. The entire world was promised to Abraham (Rom 4).
Seems pretty simple to me.
For those who are open minded, I'd suggest listening to Borgman's audios. This discussion will make much more sense. Dispensationalists get mad as wet hens when their doctrines are questioned