According to midrash God went to all of the other people of the world first to see if they would accept Torah. They would not. Last of all he went to the Jews and they would only accept with a mountain held over them. So yeah, Dream's more or less correct from a Jewish perspective. Chosenness implies responsibility, not privilege. The talmud compares it to the case of a kohein (priest) and a non-priest. The kohein has more responsibilities but isn't considered by any means more special or privileged. So too for gentiles.
Dauer, do you believe that G-d literally held the mountain over the heads of the Jews ? Or is it a metaphor, allegory or allusion ?