Jan
I think the reasons why so many Christians believe this refers to Christ and Israel is:

Rev 12:5  And she brought forth a man child, who was to rule all nations with a rod of iron: and her child was caught up unto God, and [to] his throne.

If you search the Word, the highlighted phrase is always used a description of our Lord.

Nowhere in the Word does it state that the Church will rule all nations. This is what our Lord does because he payed the price, not the church. We are redeemed through him and we will be Kings and Priests. But He is Lord of Lords and King of Kings and he is our High Priest and our Chief Cornerstone.  Hope this helps. I also have some Bible study material on this I could send you or anyone else who is interested.

YBIC James