You obviously did not read 2 Cor. 7:10! Go read it before commenting. There are two different types of "sorrow" identified by Paul in 2 Cor. 7:10. One is "worldly sorrow" that is "unto death" while the other is "godly sorrow" that is "unto salvation."
Judas is an example of "worldly sorrow." He was convicted of his sins but his sorrow over sin was not unto salvation but unto death - he went out and hung himself.
The Word of God has a natural convicting quality. However, when the scriptures come in "word only" (1 Thes. 1:5) without being accompanied by the power of the Holy Spirit they produce only "worldly sorrow." Now worldly sorrow is conviction over sin but it not "unto salvation."
On the other hand there is "godly sorrow" that occurs when the scriptures come "not in word only BUT in power and in the Holy Spirit" (1 Thes. 1:5). This is Holy Spirit power of conviction over sin which is "unto salvation."
Now, to answer you question. The natural conviction of God's Word precedes salvation and so there is conviction over sin produced by the Word of God prior to salvation by the Word of God. However, the Word of God alone does not produce "godly sorrow" unto salvation. Godly sorrow is produced when the Word comes "in power and in the Holy Spirit".
The sorrow that accompanies the Word of God precedes salvation. When the Holy Spirit empowers the Word regenerative life is produced and worldly sorrow turns into godly sorrow and repentance and faith in the gospel occurs.
Israel was God's people as a chosen nation but they were not INDIVIDUALLY God's people by genuine salvation. It was God's chosen people who rejected Christ and who rejected all the prophets before Christ. You are confusing the people of God as a chosen nation with true saved Israelites like David, Daniel, Moses, etc. You are equating "the people of God" to be equal to saved people of God when that is not the case as even a casual reading of Deuteronomy and Numbers and judges, Chronicles and Kings easily demonstrates.
Secondly, the fallen nature of a Jew is no different than the fallen nature of a Gentile - both are sinners by nature. No Jew is born into this world saved any more than any gentile is born into this world saved they are both born into this world equally unregenerated and lost. Hence, just because the individual Jew is of the chosen people of God does not mean he is a true child of God but is equally as lost as the Gentile! Hence, the MORAL DESCRIPTIONS given to describe Jews in the Old Testament are EQUALLY applicable to Gentiles as man is man regardless of their ethnicity. Isaiah 64:4-6 may be directly applied to Jews but it is equally descriptive of any other man of any other ethnicity because there is no difference when it comes to human nature and the fallen nature regardless of whom the verse may be directed toward!
The righteousness of the Jew is no more "good" in the sight of God as the righteousness of the Gentile as they are MORALLY THE SAME becuase the moral nature of the Jew is no different than the moral nature of the Jew. This is what Romans 3:9-23 is all about, to prove there is NONE RIGHTEOUS, NO, NOT ONE as there is NO DIFFERENCE between Jews or Gentiles when it comes to their moral nature they are born into this world with. Both are equally UNRIGHTEOUS before God by nature and so the righteousness of the lost Jew is as much filthy rags before God as the righteousness of the lost Gentile - both equally fall short of God's standard of righteousness and therefore there is no difference for all are sinners and all have sinned.
Yes! However, moral issues are not restricted to any particular ethnicity and Isaiah 64:4-6 deals with moral issues common to the human nature.
NE, never did and never will! The purpose of the Law was to reveal their need of salvation by demonstrating through the law they cannot keep it and thus they are sinners and need a Savior or else they would be their OWN SAVIORS and their salvation would be their obedience to the law! 