Nephi is addressing his testimony to all the house of Jacob “who are called by the name of Israel.” The two different names (Jacob/Israel) used here are important.
Jacob was the original given name to Isaac’s son. That name was changed by the Lord who gave him a new name. Genesis records Jacob’s dialogue with the Lord’s angel:
“And he said, I will not let thee go, except thou bless me. And he said unto him, What is thy name? And he said, Jacob. 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, I 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 I have seen God face to face, and my life is preserved.” (Gen. 32: 26–30.)
The name of Jacob was given by man (his father). But the name of Israel was given by God (his Heavenly Father). God giving someone a new name is a profound event. It signifies that person has a newness of life with Him. Receiving a new name from God also marks entry into His family, for when God gives a name He is adopting into His family. He names someone because they belong to Him.
Nephi is writing for covenant people, who are not merely biological descendants of Jacob, but are Israel because of their covenant relationship with God. He is speaking to those not merely connected by descent, but connected by rebirth and covenant. These covenant people include the Nephites when they had the Gospel, and also members of the Church of Jesus Christ of Latter-day Saints. Therefore, this message is for us
If that were not clear enough, the further meaning was added to include those who have come “out of the waters of baptism.” These words are intended as a testimony against those who think they have part in God’s promises because they were baptized. These baptized covenant people are among those Christ said would be disappointed at His return. His parables return again and again to the theme that His followers, who claim to be ready for Him to return, will not be ready to receive Him. The “ten virgins” were prepared, dressed appropriately, and awaiting arrival of the Bridegroom. Yet fully half of them were left without sufficient oil in their lamps at His return.Similarly the Gospel net, gathering in all kinds of fish, had to be picked through, and many of the fish discarded.
Other parables of the sower, and the vine, for example, contain sobering assessments of those who claim to be affiliated with Christ’s Gospel. While it is beyond the scope of this work to deal with these parables at length, a candid review of Christ’s teachings on this subject is sobering. There are many who reject His Gospel, and few who accept it, and there remain fewer still from among those who accept it who will have the required oil in their lamps. “Oil,” in the sense used here, includes the required goodness in their lives. It presumes growth in spiritual understanding to the point they become fruitful. It anticipates such people exhibit the gifts of the Spirit in abundance, and not merely that they are affiliated with a Church. Membership in Christ’s Church alone has never been a guarantee of salvation.