If you mean Abraham being told to kill Issac, I think that may have supposed to have been a test of Abraham's Faith, because God had told Him that He was going to have a seed[descendants]come through Issac.I think that Abraham believed that Promise so strongly that he knew that even if he killed Issac that God would still fulfill the Promise, even if He had to raise Issac from the dead.
And if you mean Israel by the Chosen People, yes, they were bad.They were once following God at least some, but they turned their back on Him and resorted to worshipping idols and offering children in sacrifice to idols, and committed all sorts of other sins.In short, they were wicked, they were evil, and it was not wrong for God to bring judgement on them for that.
And also anyone who doesn't accept Jesus as their Savior will eventually face judgement, whether in this world or Hell.We are all born sinners, and deserving of God's Wrath, but Jesus died so we could be Redeemed from sin and get to Heaven.So if we don't accept Him, we will not make it into Heaven, and will really just go to Hell.I guess that's really just the simplest way to put it.
If were not saved, then we are naturally sinners, and deserving of God's Wrath, so we must accept Jesus as our Savior and let God cleanse us of our sin, and by accepting Christ we can make it to Heaven, but He is the only way.