Isaiah 2:2 and dispensationalism: a dilemma
In their interpretations of Isaiah 2:2, the prophecy that the mountain of the Lord’s house will be established at the top of the mountains, above the hills, dispensationalist commentators and expositors are torn between their commitment to their mantra of literalism, and their devotion to the idea that ethnic Jews will dominate other nations in the Millennium. The literal view says the prophecy means that mount Zion and Jerusalem will be literally raised up, by tectonic means. Contrasting with this approach is the interpretation of mountains as nations, which leads to the concept of Jews becoming a kind of master-race.
Commenting on Isaiah 2:2, dispensationalist John A. Martin wrote: 
Here Isaiah was foretelling the future of Jerusalem and Judah. In the prophecies of restoration which are prominent in Isaiah’s book, he was not specific as to the exact time when they would be fulfilled (perhaps he did not know; cf. 1 Peter 1:10-11). Here he simply said in the last days. Other Bible passages make it clear that these predictions will be fulfilled in the Millennium, Christ’s 1,000-year reign on the earth. Because of God’s covenant promises to Abraham, Moses, and David, Isaiah knew that Israel will again be in the land and will again have a superior position among the nations.
The mountain of the Lord’s temple refers to the mount where the temple was built (and where the millennial temple will be built, Ezek. 40-43). Often in the Scriptures mountains denote governmental authorities (Dan. 2:35; Amos 4:1). Here God’s rule from the temple will be preeminent (chief). The theme of the prominence of the temple mount in Jerusalem is repeated often in Isaiah’s prophecies all the way to the end of the book (Isa. 11:9; 25:6-7; 27:13; 30:29; 56:7; 57:13; 65:11, 25; 66:20). Isaiah clearly wanted his readers to be aware that God will protect His covenant nation despite their spiritual insensitivity and even though they would go into captivity.
Similarly dispensationalist commentator David Guzik imagined Jews becoming the “superpower” of the world. He wrote: 
In the latter days: In context, the term latter days refers to the “time of the Messiah,” when the Anointed of the LORD reigns over the earth. This speaks of the time many refer to as the millennium, the thousand-year reign of Jesus on this earth (Psalm 72, Isaiah 11:4-9, Jeremiah 23:5-6, Luke 1:32-33 and 19:12-27, Matthew 5:18).
The mountain of the LORD’s house shall be established on the top of the mountains, and shall be exalted above the hills; and all nations shall flow to it: During the millennium, Israel will be the “superpower” of the world. It will be the leading nation in all the earth, and the center of Israel will be the mountain of the LORD’s house – the temple mount, which will be the “capital” of the government of the Messiah. All nations shall flow to the “capital” of the government of Jesus.
Dispensationalists invoke literalism to argue that the church is not referred to in prophecy as Judah or Jerusalem or Israel. But John A. Martin and David Guzik and others evidently have no qualms about abandoning the literal approach and adopting a figurative interpretation when it suits their prejudice, and when it affords an opportunity to prop up their dreams of Jews becoming a “superpower.”
Thomas L. Constable considered the more literal approach, but leaned towards a figurative interpretation. He wrote: 
The term “mountain” is sometimes a symbol of a kingdom, nation, authority, or rule elsewhere in the prophetic writings (e.g., Dan. 2:35, 44- 45; Amos 4:1; Rev. 17:9-11). The ancients also regarded mountains as the homes of the gods. If Isaiah was using “mountain” as a figure of speech, he meant that Israel and her God would be the most highly exalted in the earth eventually. This will be the case during Messiah’s earthly reign. The reference to “the mountain of the house of Yahweh” (v. 2), however, may indicate that the prophet had a more literal meaning in mind. He may have meant that the actual mountain on which the temple stood would be thrust higher in elevation. This may happen (cf. Ezek. 40:2; Zech. 14:4, 10), but the primary implication seems to be that Israel and Yahweh will be exalted in the world.
Karl Marti (1855-1925), a German critical scholar, interpreted the prophecy as saying the house of God will be on the highest of the mountains, and protrude beyond the hills, or in other words, Jerusalem and mount Zion must be tectonically lifted up, not only politically and religiously. 
Similar literal views were ascribed to Jewish Rabbis in a work by Petrus Galatinus (1460 – c. 1539), an Italian franciscan Friar Minor, in de Arcani Catholicce Veritatis, a book that plagiarized the earlier work of Spanish dominican Raymundus Martini (c. 1210-1285), author of Pugio Fidei adversus Mauros et Judaeos (1278).
John H. Sailhamer, professor of Old Testament studies at Golden Gate Baptist Theological Seminary in California, favoured the idea that a literal elevation of Jerusalem was meant. He wrote: 
Isaiah’s visions of the future looked to a time when the Davidic kingship and the Messiah would reign over that kingdom and rule all the nations of the world. In other words, they look to a time that fits remarkably well with John’s vision of the earthly reign of Christ in Revelation 20. Taken at face value Isaiah’s visions appear to speak of a literal fulfillment in Jerusalem itself and thus are not easily pressed into a reference to the establishment of the church.
Sailhamer alludes to the idea that Isaiah’s prophecy is referring to Christ and the church, and the mount Zion and heavenly Jerusalem of Hebrews 12:22. Princeton scholar Joseph Addison Alexander (1809-1860) supported this approach. He wrote: 
The prophecy begins with an abrupt prediction of the exaltation of the church, the confluence of nations to it, and a general pacification as the consequence, vs. 2-4. In this verse the Prophet sees the church permanently placed in a conspicuous position, so as to be a source of attraction to surrounding nations. To express this idea, he makes use of terms which are strictly applicable only to the local habitation of the church under the old economy. Instead of saying, in modern phraseology, that the church, as a society, shall become conspicuous and attract all nations, he represents the mountain upon which the temple stood as being raised and fixed above the other mountains, so as to be visible in all directions. And it shall be (happen, come to pass, a prefatory formula of constant use in prophecy) in the end (or latter part) of the days (i. e. hereafter) the mountain of Jehovah’s house (i. e. mount Zion, in the widest sense, including mount Moriah where the temple stood) shall be established (permanently fixed) in the head of the mountains (i. e. above them), and exalted from (away from and by implication more than or higher than) the hills (a poetical equivalent to mountains), and the nations shall flow unto it. It was not to be established on the top of the mountains, but either at the head or simply high among the mountains, which idea is expressed by other words in the parallel clause, and by the same words in 1 Kings 21:10, 12. The verb in the last clause is always used to signify a confluence of nations.
James Burton Coffman (1905-2006) wrote: 
Jehovah’s house shall be established…
This is not a reference to the Jewish temple, but to the Church of Jesus Christ. As an apostle expressed it, addressing a faithful church, Ye are the temple of God (1 Corinthians 3:16). Other passages that identify God’s house are Heb. 12:18-23 and 1 Tim. 3:5.
Hebrews 12:22, “But ye are come unto mount Sion, and unto the city of the living God, the heavenly Jerusalem, and to an innumerable company of angels,” implies that Isaiah’s prophecy was fulfilled, when Jesus ascended to the throne of his Father. The mountains of prophecy are symbolic of the promises of God. This was revealed in Genesis 49:26, when Jacob blessed Joseph, and said this blessings extended “unto the utmost bound of the everlasting hills.” In Hebrews 12:22-24, the elements of the promises to Abraham, Isaac, and Jacob are restated in a Christian context as shown in the table below.
|Hebrews 12:22-24||Promises to Abraham, Isaac, & Jacob|
ye are come unto mount Sion, and unto the city of the living God, the heavenly Jerusalem
|Abraham: Get thee out of thy country, and from thy kindred, and from thy father’s house, unto a land that I will shew thee [Genesis 12:1]
Abraham: And the LORD said unto Abram, after that Lot was separated from him, Lift up now thine eyes, and look from the place where thou art northward, and southward, and eastward, and westward: For all the land which thou seest, to thee will I give it, and to thy seed for ever. … Arise, walk through the land in the length of it and in the breadth of it; for I will give it unto thee. [Genesis 13:14-15, 17]
Abraham: Unto thy seed have I given this land, from the river of Egypt unto the great river, the river Euphrates [Genesis 15:18]
Isaac: Sojourn in this land, and I will be with thee, and will bless thee [Genesis 26:4]
Jacob: the land whereon thou liest, to thee will I give it, and to thy seed [Genesis 28:13]
the general assembly and church of the firstborn, which are written in heaven
|Abraham: I will make of thee a great nation, and I will bless thee, and make thy name great; and thou shalt be a blessing [Genesis 12:2]
Abraham: I will make thy seed as the dust of the earth: so that if a man can number the dust of the earth, then shall thy seed also be numbered. [Genesis 13:16]
Abraham: Look now toward heaven, and tell the stars, if thou be able to number them: and he said unto him, So shall thy seed be. [Genesis 15:5]
Abraham: I will multiply thy seed as the stars of the heaven, and as the sand which is upon the sea shore [Genesis 22:17]
Isaac: I will make thy seed to multiply as the stars of heaven [Genesis 26:4]
Jacob: thy seed shall be as the dust of the earth, and thou shalt spread abroad to the west, and to the east, and to the north, and to the south [Genesis 28:14]
to Jesus the mediator of the new covenant
|Abraham: in thee shall all families of the earth be blessed. [Genesis 12:3]
Abraham: in thy seed shall all the nations of the earth be blessed [Genesis 22:18]
Isaac: in thy seed shall all the nations of the earth be blessed [Genesis 26:4]
Jacob: in thee and in thy seed shall all the families of the earth be blessed [Genesis 28:14]
3. Dr. Constable’s Notes on Isaiah. 2012 Edition. p. 17.
4. K. Marti. Das Buch Jesaja (1900).
6. Joseph Addison Alexander. Isaiah Translated and Explained.