You've got to look at the entire context of the passage, as well as the Greek meanings of the words. The word 'observation' in Greek is also translated as inspection. and consider how the ESV translates it: Luke 17:20 "Being asked by the Pharisees when the kingdom of God would come, he answered them, "The kingdom of God is not coming with signs to be observed," then the passage goes on to explain how it will happen like lightning, in an instant, and the implications of the immediacy of the event. It also mentions how some will be taken and others left, which doesn't seem to correspond to your idea. So it seems to be saying something more along the lines of it is not something you will be able to observe in the process of taking place, because when it happens, it will be in an instant, rather than the idea that it will secretly happen over a long period of time. Plus there are other passages which mention that every eye will see him, and how he will return in the same manner as he left(visibly). What it means for the kingdom of God to be within you doesn't necessarily mean that it is a mere idea or personal inclination.
It's also notable that Jesus didn't fight against tyrannical governments, but planted seeds that would change peoples minds at a much more basic and philosophical level.
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