A journey with sacraments

I think that I became a paedobaptist for the second time (!) because I decided that every argument against it, if valid would also overturn circumcision, because the differences between the OT and the NT that were relied upon to distinguish the two were shown up to be no difference at all by Romans 9-11.

I think I've now come to a 'high' Lutheranish position for the same reason. Arguments about real presence and effectual rituals rely on seeing God as either free or bound. However the OT sees God as both ultimately free, but graciously choosing to bind himself in covenant to certain signs. In the OT he is seen as both as everywhere and residing in the Temple. It sees sacrifices as themselves effectual, and yet worse than pointless without repentance. How can you reconcile the two? I haven't got a clue. In that I am like Luther who said to Zwingli:

"I do not ask how Christ can be God and man and how His natures could be united. For God is able to act far beyond our imagination. To the Word of God one must yield. It is up to you to prove that the body of Christ is not there when Christ Himself says, 'This is my body.' I do not want to hear what reason says. I completely reject carnal or geometrical arguments..."