The problem is that the
issue doesn’t carry the same cultural, political and theological weight
in Europe that it does in the US. I have tended to steer away from it,
partly because I don’t know enough about it, partly because I don’t
want to know any more about it.

True. But emerging engagement with the predominant interpretations of Christianity are not confined to Europe. Christian support for Zionist policies have international consequnces. The message of Jesus insofar as it is to be taken to all the nations has international significance. I would like to see you step outside your comfort zone.

I take your point that there is a problem with grounding the story
in the context of ancient Israel. But that’s simply where the story
belongs - and to remove the gospel from that context is to distort it,
sometimes quite seriously.

I would caution that "the story belongs" there because you and others have situated it there. Not everyone does. There are multiple contextual possibilites. Or have you laid your hands on the Right Interpretation and Right Context?

I would suggest that
it is precisely the failure to grasp the eschatological-historical
realism of the New Testament that has created the theological space for
Christian Zionism to emerge.

Or maybe it is because Christian Zionists and Jewish Zionists make a link between ancient Israel and the modern state of Israel that is eerily similar to what you are implicitly suggesting.

I urge you to show us how the story of ancient Israel is not connected to the modern state of Israel. I fear that your storyline, however multi-layered it is, can be appropriated by such conservative views and put to use to justify their theological and policy stances.