Ok, I'll add my 2 cents to this debate. I too struggled with questions like these. They all disappeared for me after I realized that the Bible absolutely CANNOT be taken literally... the entire collection is metaphor and myth but encapsulates a very basic truth.
One of the best books in my opinion you can read on this topic is "The Bible and the Psyche" - Individuation Symbolism in the Old Testament by Edward F. Edinger. All of the stories in the Bible revolve around consciousness, the knowing and being known which belong to the phenomenon of consciousness. How else to believe that a God would 'choose' only one nation? Similarly, the sacrificial nature of the Jewish religion is a relationship between the ego and the Self...carried over into the New Testament. Redemption is a metaphor for the Self desperately needing the ego to know it. I am very poor at explaining this type of thing, but the book is a real eye-opener and makes all of this much easier to swallow...I could never accept that God would have purposedly 'sacrificed' his only begotten Son to 'redeem' mankind, but as metaphor, it makes sense.
The book of John was the latest of the Gospels to be written and I don't think I need to set out again that much of it was espousing already established 'Church' quasi-orthodoxy vis-a-vis those who did not believe Christ as being a real human person...this just nailed it down, so to speak.
I am not as eloquent as many here, hope you understand my ramblings...oh, and definitely READ THAT BOOK!