Not true, see below --

History of understanding concerning Daniel 2's stone kingdom.

1. Early Christian writers were fairly united in saying
"the stone cut out without hands"
referred to Christ's incarnation; The Stone was Christ --
And the smiting of the image by the stone was generally understood to apply to the second advent.



2. The Catholic View
In about the third century a gradual shift appears in the understanding --
The stone still being referred to as Christ's incarnation, but now some began to think the "smiting of the image" was the Christian church filling the earth.
The fifth-century theologian Augustine maintained that this stone kingdom was the Roman Catholic Church. Augustine (354-430), in his book "The City of God" emphasized the idea of the kingdom of God as the Catholic church ruling on earth and that even now his saints reign with Him."

Augustine was "bad news" for groups who weren't willing to bow to the emerging authority of the Roman Church. His book was written to exalt the Roman church and he built the theories that led to the medieval religio-political state church.
Thus in the centuries following the whole stone and kingdom was depicted as the Catholic church. After all -- Peter (the stone) was supposedly the forerunner of all the popes with the keys of the kingdom.

This still seems to be pretty much the Catholic understanding -- they see the Catholic church moving ahead to the final triumph when their idea of the "stone kingdom" (ie the Catholic church, led by the Pope) will fill the whole earth. And the pope will sit in what they consider his God appointed place at the head.

An interesting comment from "The Catholic Cabinet, July 1843 an article entitled "Fulfilment of Prophecy -- The Church" p.133






3. The Reformation view
The view that the Catholic Church was the stone and kingdom was rejected by the reformers as the papacy was identified as the antichrist of prophecy. The Historicist method of interpretation was firmly in place outlining the four kingdoms of the image, and identifying the little horn of Daniel 7 as the papacy.
They viewed the stone of Daniel 2, as Christ, but they were divided as to whether it referred to Christ's first coming when He established the "spiritual kingdom" or His second coming in a catastrophic "smashing" . There was no real consensus.
Some looked to the rabbis for ideas -- the Jews of course still waiting for the Messiah to come and set up His kingdom in Jerusalem.


4. POST REFORMATION
The counter Reformation brought in Preterit interpretation --
Preterism holds to the stone referring to Christ establishing the spiritual kingdom at His first coming. The kingdom is the dominion of Christ over earth, which he obtained at his ascension in heaven. His second coming was spiritual (intangible/invisible) in the destruction of Jerusalem. The church is the "new Jerusalem" and becomes the earthly seat of Christ's kingdom and throne.

The counter Reformation also brought in the Futurist interpretation, which originally held that the stone was the spiritual kingdom which would one day fill the earth, this was adapted by Dispensationalists -- which hold to the stone being the Messianic kingdom (millennium reign of Christ) in Palestine (Jerusalem).


This is not an exhaustive study but a generalized overview of the tends in Christian History.

When William Miller came on the scene, the concept of the world getting better, and moving ahead to an earthly utopia type kingdom was very strong within Christian denominations.

Millers view of the second coming as "the end of the world" and meeting Christ in the air, was a radical departure from the general understanding of Daniel Two.

After the great disappointment, many of the Millerites rejected Miller's teachings, and returned to their churches and former beliefs.

Pioneer Seventh-day Adventists, however, could not turn their backs on what they had found to be truth, and went to their Bibles to dig for understanding and wisdom.

They discovered the sanctuary truths and the answer to the 2300 days.
They continued to refute any concept of a utopic type of kingdom on this earth prior to 1000 years in heaven, and continued to look to the second coming of Christ as "the end of the world" when they would be caught up into air to be with Christ in heaven for 1000 years.


Studies of a utopic, present world, type of kingdom, is not "new light" at all, it is the basic belief of Catholicism that has also taken over the protestant churches.

Actually the Protestant Churches didn't shake off the earthly kingdom idea during the reformation. They never grasped that a literal kingdom and religion were never again to be merged in this world of intolerance. Thus we see in history, reformers persecuting other reforming groups, trying to establish "kingdom" like territories where everyone worshipped according to the original reformers beliefs. The Puritans escaped from the English Anglicans who were persecuting them. Yet, once in America the Puritans persecuted the Quakers and other groups believing different. It wasn't until America formed it's constitution that people could actually worship freely.

We are heading for another "kingdom" of intolerance, and it will bring in the time of trouble as never before seen in earth's history.

Solemnly and regretfully Christ asked, "Did ye never read in the scriptures, The stone which the builders rejected, the same is become the head of the corner; this is the Lord's doing, and it is marvelous in our eyes? Therefore say I unto you, The kingdom of God shall be taken from you, and given to a nation bringing forth the fruits thereof. And whosoever shall fall on this stone shall be broken; but on whomsoever it shall fall, it will grind him to powder." ...The doom foretold came upon the Jewish nation. Their own fierce passions, uncontrolled, wrought their ruin. In their blind rage they destroyed one another.{COL 295}

Christ calls upon us to lay our sins upon Him, the Sin-Bearer. . . . But if we refuse to let them go, taking the responsibility ourselves, we will be lost. We may fall upon Christ, the living stone, and be broken, but if that Stone falls upon us, it will grind us to powder. FLB 102

"Arise, shine; for thy light is come, and the glory of the Lord is risen upon thee." Isaiah 60:1. Christ is coming with power and great glory. He is coming with His own glory and with the glory of the Father. And the holy angels will attend Him on His way. While all the world is plunged in darkness, there will be light in every dwelling of the saints. They will catch the first light of His second appearing. The unsullied light will shine from His splendor, and Christ the Redeemer will be admired by all who have served Him. While the wicked flee, Christ's followers will rejoice in His presence. {PK 720.2}
Then it is that the redeemed from among men will receive their promised inheritance. Thus God's purpose for Israel will meet with literal fulfillment. That which God purposes, man is powerless to disannul. Even amid the working of evil, God's purposes have been moving steadily forward to their accomplishment. It was thus with the house of Israel throughout the history of the divided monarchy; it is thus with spiritual Israel today. {PK 720.3}
The seer of Patmos, looking down through the ages to the time of this restoration of Israel in the earth made new, testified: {PK 720.4}
"I beheld, and lo, a great multitude, which no man could number, of all nations, and kindreds, and people, and
tongues, stood before the throne, and before the Lamb, clothed with white robes, and palms in their hands; and cried with a loud voice, saying, Salvation to our God which sitteth upon the throne, and unto the Lamb. {PK 720.5}

Ded- She quotes -- It should be remembered that the promises and threatenings of God are alike conditional. {1SM 67.8}

Then asks --"So are you saying the statement by EGW is not true?"

Of course what she said is true. But we must understand it in context. For instance, we must agree with the above in the context of what was made clear by the following:

The story of Israel's call, of their successes and failures, of their restoration to divine favor, of their rejection of the Master of the vineyard, and of the carrying out of the plan of the ages by a goodly remnant to whom are to be fulfilled all the covenant promises--this has been the theme of God's messengers to His church throughout the centuries that have passed. And today God's message to His church--to those who are occupying His vineyard as faithful husbandmen--is none other than that spoken through the prophet of old:

"Sing ye unto her, A vineyard of red wine. I the Lord do keep it; I will water it every moment: lest any hurt it, I will keep it night and day." Isaiah 27:2, 3. (Prophets and Kings, p.22)

And this --

Never has the Lord been without true representatives on this earth who have made His interests their own. These witnesses for God are numbered among the spiritual Israel, and to them will be fulfilled all the covenant promises made by Jehovah to His ancient people.

Clear straight words from SOP. "ALL" does not mean "some". And one of the prime covenant promises was the latter day Kingdom in Israel.