Deuteronomy 10:16 - Its about the Attitude
The sons of Abraham made a covenant with God to have a physical circumcision, but the implications of this were much more than just a physical act. The Israelites lost that part and just did the "ritual" and lefts it at the physical, but God also wants us to circumcise our hearts towards Him. The physical is for nothing unless it is accompanied by a change in attitude as well. This is the same statement Jesus was making when He said "You must pick up your cross and follow Him". We must live in the attitude of submission to God to truly follow after Him.