I'm sorry to hear that you're having difficulty 'connecting the dots'.
Let's start with where the name 'lsrael' originates. It's a name given by God to Jacob, who wrestled all night with an angelic figure at Peniel. It's important to understand the significance of this encounter, and the words used in scripture that explain what happened.
In Genesis 33:28-30, it says, 'And he said, Thy name shall be called no more Jacob, but Israel: for as a prince hast thou power with God and with men, and hast prevailed.
And Jacob asked him, and said, Tell me, l pray thee, thy name. And he said, Wherefore is it that thou dost ask after my name? And he blessed him there.
And Jacob called the name of the place Peniel: for l have seen God face to face, and my life is preserved'.
This encounter was with the 'face' of God, the Spirit of God, who refused to give his name. Yet, it's this Spirit of God that says that Jacob will be called lsrael because 'as a prince hast thou power with God and with men'.
'A prince' is a term used to portray the Messiah, as it says in Ezekiel 34:24, 'And l the LORD will be their God, and my servant David a prince among them; I the LORD have spoken it'.
The Messiah is also a 'mediator' between God and men. Genesis 33 conveys this well with the words, 'hast thou power with God and with men'.
The name 'lsrael' is not applied consistently to Jacob, and one should question why this does not happen even after the name change. Yet, 'lsrael' as a name is eventually applied to the whole congregation of the twelve tribes. Hence, it can said that there is an individual whose name applies to the whole congregation. The individual 'lsrael' saw God 'face to face', and the congregation who bear the name 'lsrael' also see God 'face to face'. To be saved, as all lsrael will be, it is necessary for all lsrael to know their God 'face to face'.
Can you now begin to see that 'in Israel' there is salvation, but only if one understands that lsrael is a body attached to a head, which is Christ (the 'face' of God).
Wow...this is a mess for so many reasons.
Can we just start with some cleanup in aisle 3?
You mean Genesis 32, not 33.
And the insertion of "prince" in Gen 32:29 is silly. There is no word in the Hebrew that signals that:
וַיֹּ֗אמֶר לֹ֤א יַעֲקֹב֙ יֵאָמֵ֥ר עוֹד֙ שִׁמְךָ֔ כִּ֖י אִם־יִשְׂרָאֵ֑ל כִּֽי־שָׂרִ֧יתָ עִם־אֱלֹהִ֛ים וְעִם־אֲנָשִׁ֖ים וַתּוּכָֽל׃
Said he, “Your name shall no longer be Jacob, but Israel, for you have striven with beings divine and human, and have prevailed.”
Whereas the Ezekiel line has a word for prince/chief
וַאֲנִ֣י יְהֹוָ֗ה אֶֽהְיֶ֤ה לָהֶם֙ לֵֽאלֹהִ֔ים וְעַבְדִּ֥י דָוִ֖ד
נָשִׂ֣יא בְתוֹכָ֑ם אֲנִ֥י יְהֹוָ֖ה דִּבַּֽרְתִּי׃
I the LORD will be their God, and My servant David shall be a ruler among them—I the LORD have spoken.
so that connection disappears. Also, the Gen 32 verse says nothing about being a mediator. It mentions prevailing over the divine and over man. If you can make prevailing turn into mediation then you misunderstand what mediation is.
And the people don't have to see God face to face because the text says that no man can see God's face and live.
וַיֹּ֕אמֶר לֹ֥א תוּכַ֖ל לִרְאֹ֣ת אֶת־פָּנָ֑י כִּ֛י לֹֽא־יִרְאַ֥נִי הָֽאָדָ֖ם וָחָֽי:
This is one reason why most commentators see the word elohim here as not referring to God, but to an angel of God.
One commentator explains that seeing God's face is a term for prophecy and we know that not every Jew is expected to be a prophet, so demanding that they see God face to face is difficult, though the Radak points out that he revelation at Sinai provided the entire nation a measure of prophecy which can be equated so there you go.
Other commentators point out that the Hebrew phrase for "face to face" is used in Kings II for warfare and why would anyone demand that the nation have a war with God?