If you look carefully into the play by play between God and Israel during the Exodus, and especially as they hear Him speak to them from Sinai, you’ll notice something interesting.
God tells them they will be His special possession; a kingdom of priests. Now a priest is someone who goes to God on behalf of others. Israel would be, God told them, a kingdom of priests, presumably going before God on behalf of the rest of the nations.
However the idea of going before this God, this consuming fire, terrified them and they said to Moses, “You speak to God and come back and tell us what He said and we’ll do it, but let not God speak directly to us any more lest we die.” (or something to that effect) So Israel requested the law. They didn’t want the relationship because it scared them. And yes, they would die. Just as Jesus tells us, “Whoever would follow Me must take up his cross and come after Me.” So that is the place of death. We do have to die – to this world’s system – in order be be made free of it and to be enabled to be under the authority of the King, Jesus.
So God said that the thing they had requested was good, and He complied. Paul says the law is a tutor to bring us to Christ, and so I don’t think God was surprised that Israel rejected the relationship. He said, “Okay, they’ve asked for a good thing,” and He gave them the law. He knew that it was necessary in order to prepare the world for the true King.
So . . . I guess I would have to disagree with the concept that God was apologizing to the Jews for letting them down. I don’t see that He DID let them down. He fulfilled His side of the bargain, and they had theirs to fulfill (obeying the law, as they had requested and promised). I believe that if Israel had accepted Jesus’ Messiah-ship, that perhaps the Messianic Reign would have begun for them right there and then. (Of course God knew that wouldn’t happen, but it was an option for them.)
However if it’s the idea of a different theory of the atonement that you find attractive, I’m right there with you. So is nearly everyone on this forum from whom I’ve heard. For most of us the concept of penal substitution, which is the prevalent theory of choice today is hard to swallow. Here’s a thread where we discussed different atonement theories: [Poll: What’s Your Theory of Atonement?) And if you search “atonement theory,” you’ll find quite a lot more.
Blessings, Cindy