Musar zu Schemot 18:1

Some Kabbalists explain Exodus 18,1, in which we are told what Yitro "had heard," as a description of Moses' spiritual ascent. According to that view, the words אשר עשה אלוקים למשה, mean that G–d in His capacity as י-ה-ו-ה, made an Elo-him of Moses. Yitro had heard that G–d said about Moses: ראה נתתיך אלוהים לפרעה, "See here, I have made you a deity over Pharaoh," while at the same time He had made the people His עם, nation. It was Yitro's understanding that becoming G–d's people meant becoming His "army." This would have been the realisation of G–d's wish ever since the Creation to have a residence in the material world. The reason that G–d, i.e. His manifest Presence, שכינה, withdrew from earth was only because man had seriously damaged that part of G–d's creation by his sins. Now G–d had refined the Jewish people in the "crucible" of the Egyptian bondage experience to the point where He chose them to be His "army" in lieu of His Celestial Army. This is the meaning of the words in 6,26: הוציאו את בני ישראל מארץ מצרים על צבאותם, "Take the children of Israel out of Egypt in their armies." Rashi comments that the words: צבאותם mean "every army according to their tribes." Had not these people participated in the sin of the golden calf afterwards, they would have remained on that lofty level indefinitely, just as they will be in the Messianic future of which the Torah says in Leviticus 26,12,: והתהלכתי בתוככם, "I shall be walking amongst you."