Steven, No it is not at all impolite to refer to Jews as Hebrews. It is only strange. It would be like calling Europeans, Celts. It's just a very archaic term. They were Hebrews in Egypt and in the wilderness. They were Israelites in Israel. After 1948 they are now Israelis. Jews are called Jews as they are all descended from the Kingdom of Judah before the Roman invasion. So as you see, Jew makes the most sense to address one today.
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