The whole context of the last ten chapters of Isaiah is rich with Messianic prophecies, overtones that most also be understood in their cultural and historical setting. Because of our tendency to over spiritualize the language in Isaiah 65 we miss the actual meaning.
This is especially true when a specific message is given to Israel about their own situation. Another great example of this is found in Isaiah 65:21-23 which reads, They shall build houses and inhabit them; They shall plant vineyards and eat their fruit. They shall not build and another inhabit; They shall not plant and another eat; For as the days of a tree, so shall be the days of My people, And My elect shall long enjoy the work of their hands. We need to look more closely at the language and similarities uses in Isaiah 65:21-23 to see how it is used elsewhere in the Old Testament. As with the wolf and the lamb.
After Jehovah delivered Israel from the bondage of Egypt He set forth some conditional promises concerning the possession of the land of Canaan. The promises concerning the possession of the land of Canaan were conditional upon faithfulness and obedience on the part of the people of Israel, who was repeatedly warned that if their hearts turned away from Jehovah they would be plucked from off the land (Deut. 4:26; 8:19, 20; 30; 17, 18; Josh. 23:13; 16).
The covenant made at the end of the wilderness journey is limited to a recital of the terms and conditions upon which the children of Israel would be permitted to occupy the land of Canaan, which God had promised their fathers.
In a great prophetic section of Deuteronomy, Moses says into Israel. The fruit of thy ground, and all thy labors, shall a nation which thou knowest not eat up; and thou shalt be only oppressed and crushed always; so that thou shalt be mad for the sight of thine eyes which thou shalt see. Jehovah will smite thee in the knees, and in the legs, with a sore boil, whereof thou canst not be healed, from the sole of thy foot unto the crown of thy head. Jehovah will bring thee, and thy king whom thou shalt set over thee, unto a nation that thou hast not known, thou, nor thy fathers; and there shalt thou serve other gods, wood and stone. And thou shalt become an astonishment, a proverb, and a byword, among all the peoples whither Jehovah shall lead thee away. Thou shalt carry much seed out into the field, and shalt gather little in; for the locust shall consume it. (Thou shalt plant vineyards and dress them, but thou shalt neither drink of the wine, nor gather the grapes; for the worm shall eat them. Thou shalt have olive-trees throughout all thy borders, but thou shalt not anoint thyself with the oil; for thine olive shall cast its fruit. Thou shalt beget sons and daughters, but they shall not be thine; for they shall go into captivity). All thy trees and the fruit of thy ground shall the locust possess. (Emphasis added Deuteronomy 28:33-42 ASV)
There are also similarities to this language which are seen in Zephaniah. And it shall come to pass at that time, that I will search Jerusalem with candles, and punish the men that are settled on their complacency, Who say in their heart, The LORD will not do good, neither will he do evil. Therefore, their goods shall become a booty, (and their houses a desolation: they shall also build houses, but not inhabit them; and they shall plant vineyards, but not drink the wine thereof). (Emphasis added Zephaniah 1:12-13)
Failing to build their lives in God's mandatory holy behavior, the people of Israel found themselves surrounded by prophets who were predicting their doom. "To Babylon you must go, and there you will be rescued; there God will ransom you out of the power of your enemies." (Hosea.4:10).
The captivity, Hosea announced, would take the House of Israel out of the Promised Land and carry them away in chains to a place that would stretch all across the pagan North throughout a great wilderness to an area called 'Babylon' -- where they would have to stay for 70 years.
Failing to keep their end of the conditions of the covenant they were plucked off their land by Jehovah, and sent to Babylon and their valuables were stolen and homes inhabited by another and the vineyards they planted, they did not drink the wine thereof and their sons and daughters, were taken into captivity.
It is evident that there was not much "rejoicing" going on in Israel during the times of their captivity. Jehovah promised to have compassion on the people of Israel. Hosea.4:10 you will be rescued; there God will ransom you out of the power of your enemies." God is a covenant making and covenant keeping God. The term "Messianic prophecy" refers to a compilation of over one hundred predictions (conservative estimate) in the Old Testament regarding the Messiah. They have undeniable accuracy even though these prophecies were recorded by numerous writers in various books over 1000 years.
One such book is Isaiah where we read (They shall build houses and inhabit them. They shall plant vineyards and eat their fruit. They shall not build and another inhabit; They shall not plant and another eat); For as the days of a tree, so shall be the days of My people. And My elect shall long enjoy (the word of their hand). They shall not labor in vain, Nor bring forth children for trouble. For they shall be the descendants of the blessed of the Lord, And their offspring with them. (Emphasis added Isaiah 65:21-23)
Isaiah was well-acquainted with the prophecies in Deuteronomy and Zephaniah. He knows the trouble Israel has lost their homes to others and their vineyards and their children in captivity. There would be a great blessing in the Messianic kingdom. No more would the people of Israel be taken into captivity by their enemies in the Messianic kingdom. They shall build houses and inhabit them. They shall plant vineyards and eat their fruit. They shall not build and another inhabit; They shall not plant and another eat. (Isaiah 65:21-23) The Messianic kingdom was "created for rejoicing." It is interesting that Isaiah 65:22 says "as the lifetime of a tree, so will be the days of My people." We need to take a look at the way this language is used elsewhere in the Old Testament Hebrew. (Note especially the connotations of the blessing attached to a life span of 100 or more years in Deut. 34:7 and 2 Chron. 24:15)
“The lifetime of a tree, so will be the days of My people" means they will live from generation to generation. The human life span is usually shorter in captivity where there is a poor diet because of lack of food resources and really hard work etc. God's glorious message declares that their efforts "will not be in vain" (21-22). They will not die young and fail to accomplish what they started. They will live to a ripe old age, full of years, seeing all their efforts bear fruit.
So this language in Isaiah 65 should be taken in its historical setting as well. If we argue that Isaiah 65 only has a spiritual reality, then we forever miss the physical blessing of God to Israel as well.