In the final days, the covenant between Israel and Jehovah will be an ensign to the world. In the allegory of the olive tree that we will see in the book of Jacob, the covenant is consistently seen as the root of the tree. It serves that function here.
In the last days that covenant will be the goal to which the world will desire to unite. The righteous remnant of Israel will claim its rightful place, and righteous Israel will be gathered from all of the lands into which it has been scattered.
The outcasts of Israel are not intended to be a pejorative definition, but simply a description of those who had been cast out and scattered. These are the righteous, and shouldn’t be seen with our modern connotations of an outcast.