Judaism G-d Relationship with Israel

[Channalee]

So this is how I've came to understand the basic concept of the covenant relationship between G-d and Israel, this is almost entirely taken from a position paper by Micah and Samuel Renihan with some of my own personal edits, tell me what you think? [Respectfully snipped]

There's a lot you've presented here!  Allow me to focus on one of these things?  You wrote:  "In the Abrahamic Covenant, G-d promises three things primarily: a land, a people, and kingship. In other words, Abraham's offspring would inherit the land of Canaan, grow into an innumerable people ruled by their own kings."
 
In Deuteronomy 17:15, God does say: "You shall set a king over you."  He also says that the king must be one who is chosen by God.  Then, much later on, in I Samuel 8:7, when the people are clamoring for a king to judge them, God tells his prophet Samuel:  "Listen to the voice of the people, according to all that they will say to you, for they have not rejected you, but they have rejected Me from reigning over them." 
 
How would you explain this apparent contradiction in the Bible:  That at first God wants us to set a king over us, but later God says that appointing such a king is a rejection of God's reign? 
 
This question is also for anyone else who cares to comment.  I'm interested in what others have to say, as well.