Hardly a progressive understanding, huh?
I just read the full chapter to try and get a sense of what was going on in this passage (http://www.biblegateway.com/passage/?search=Romans%2011&version=NIV) and, if my interpretation is correct, it is rather shocking. It is saying that the Jews continue to have a special role in God's purpose!
To consider the society's argument for why the old type doctrine is being abandoned, I cannot see anything about Kings and Priests in Romans 11. By the same argument the whole concept of "spiritual Israel" is bunk. However, someone please correct me if there is something in the context that I am unaware of that would make this argument not worthless.
17 If some of the branches have been broken off, and you, though a wild olive shoot, have been grafted in among the others and now share in the nourishing sap from the olive root, 18 do not consider yourself to be superior to those other branches. If you do, consider this: You do not support the root, but the root supports you. 19 You will say then, “Branches were broken off so that I could be grafted in.”
The wild shoot are Gentile converts. The root is the faithful Jewish remnant. Rather than the Jews being abandoned by God (as was my understanding as a JW), the Christian church is portrayed as a direct continuation of the Jewish nation. I recommend reading the whole chapter which would seem to make this quite clear.
I do not believe in any of this but this shows that the Bible is susceptible of various interpretations.
Edit: snowbird, you seem to have come with the same point as me while I was writing this post.