Because of the apostasy, there would be no true temple for a whle for 2300 evenings and mornings. An "evening and a morning" represents one day and thus 1150 days. The apostacy period is the last 3.5 times or 1260 years ending in 1996. There would be no recognized "temple in its right condition" for the first 1150 years of this period. Thus the "true temple" would appear during the last 110 years of this period. 1996 - 110 = 1886. The true temple sect would understand more about the Bible than other religions and would produce the Christ who returns in the flesh near the very end of this period. 1886 was the year the WTS put out their first "Sudies In the Scriptures" which became a series of books establishing the doctrines of this new sect which later became Jehovah's Witnesses.
So from that point of view, yes, the WTS is the true temple that was prophesied to be recognized by God. But there's a caveat to this. Once established, this organization became infiltrated by weeds. Satan came in and sowed weeds into the field early on, before the new organization would appear. So even though recognized as God's true temple organization, it was corrupted early on with weeds. But the decision was not to remove the weeds in this early stage, but wait until the harvest time near the end of this period to then separate the wheat from the weeds, the sheep from the goats, etc. within this organization. This organization would thus produce the "little flock" which would be taken out of the organization and then the organization abandoned as apostate.
So what we are seeing today is precisely that, an abandoned, former true temple organization that God used temporarily to preach the good news and to produce the "little flock."
But there is another issue. In Bible prophecy, this temple organization functioned like the tribe of Levi, a special tribe that was focussed on the holy things of God. But that did not mean it was the "only true religion" per se. The tribe of Levi was just one tribe out of 12. Thus if the WTS fulfills the apostate "evil slave" organization, then we know Christ has gathered "other sheep" not of this fold elsewhere. Remember, the "little flock" which represents the faithful anointed of the WTS are removed and brought to "other sheep not of this fold" which Christ is gathering. Also if the WTS is the "evil slave" then who are the other 9 out of 10 slaves mentioned in that parable that do produce advancement. Christ sent out ten slaves to do business, not just one.
Also note that this same temple would produce the "man of lawlessness" which makes itself a god in God's own house. If the WTS was God's appointed true temple, thus his own house, then that would mean in the end, the GB becomes the "man of lawlessness." That is what we are seeing, with the GB making itself more of a god than ever over the witnesses.
So whether the WTS is God's true temple and is considered to represent "God's chosen people" or not is COMPLEX. The WTS served as the "true temple in its right condition" only for the last 110 years of the apostasy period, which is 1886 to 1996. But after that, it was abandoned as apostate, so at this moment the WTS is no longer under that temple covenant. The WTS has been abandoned as apostate by Jehovah, especially since the fall of 1996 when the covenant with the Jews and JWs ended. Here's a video that touches on this:
http://www.youtube.com/watch?v=CnTy8_EhE0Y