My hope is not to be contentious and I'm still trying to fully understand your line of thinking, as it as served me well in the past but...
On the contrary, the real Jew is one inwardly; and true circumcision is of the heart, spiritual not literal; so that his praise comes not from other people but from God.
Romans (Rom) 2:29 CJB
I read several translations and they all agree with the CJB. I would say, according to this, we are spiritual Jews, eh?
I do not consider you contentious at all. No problem.
In (Rom. 1:17) Paul has made a statement that "the righteousness of God is revealed from faith to faith: as it is written, The just shall live by faith." He has much to say about this. He is going to pick up again with this in (Rom. 3:21). But he digresses at the moment to explain how the wrath of God is revealed. (Rom. 1:18) And this takes you all the way to (Rom. 3:20).
The wrath of God is said to be against those 'who hold the truth in unrighteousness'. So from (Rom 1:18-3:20) Paul explains how the world, consisting of Gentiles and Jews, hold the truth in unrighteousness.
So, in (Rom. 1:18-32) Paul shows how the whole Gentile world knows the truth but have rejected that truth, with terrible wrath upon them.
In (Rom. 2:1-16) Paul is addressing the moral man who agrees with what he has said in (1:18-32) and sees himself as above such conduct. Paul assures him that he is not above such conduct and though he presents an outward morality, he is just as guilty and thus holds the truth in unrighteousness, and the wrath of God is upon him also.
In (Rom. 2:17-3:20) Paul is addressing the Jew. The Jews trust they are in good shape because they have the law of God. But Paul tells them they break the Law all the time, so just being a Jew and having the Law doesn't matter. They are just as guilty and they hold the truth in unrighteousness and the wrath of God is upon them.
It is during this that Paul makes the statement that "But he is a Jew, which is one inwardly; and circumcision is that of the heart, in the spirit, and not in the letter; whose praise is not of men, but of God." Paul is not saying to these Jews that the Gentiles who are inwardly right with God and have the circumcision of the heart in the spirit become Jews. He is telling the Jews, that the true Jew will have this circumcision of the heart in the spirit.
In other words, Paul is not saying the Gentile believers become Jews. He is saying those who are Jews by birth but are not right inwardly, are not Jews. Their claim to being Jews and having the Law is null and void. The true Jew is the one who is Jew by birth and has a right heart toward God.
Quantrill