All the children of Israel looked on, when the fire came down, and Yahweh’s glory was on the house. They bowed themselves with their faces to the ground on the pavement, worshiped, and gave thanks to Yahweh, saying, “For he is good; for his loving kindness endures for ever.”
2 Chronicles 7:1 Now when Solomon had finished praying, fire came down from heaven and consumed the burnt offering and the sacrifices; and Yahweh’s glory filled the house.
2 Chronicles 7:2 The priests could not enter into Yahweh’s house, because Yahweh’s glory filled Yahweh’s house.
2 Chronicles 7:3 All the children of Israel looked on, when the fire came down, and Yahweh’s glory was on the house. They bowed themselves with their faces to the ground on the pavement, worshiped, and gave thanks to Yahweh, saying, “For he is good; for his loving kindness endures for ever.”
2 Chronicles 7:4 Then the king and all the people offered sacrifices before Yahweh.
2 Chronicles 7:5 King Solomon offered a sacrifice of twenty-two thousand head of cattle and a hundred twenty thousand sheep. So the king and all the people dedicated God’s house.
The verse centers on "children", "israel", "looked", "fire", "came", "down", "yahweh", and "glory". It is saying that the verse draws attention to "children" and "israel", so its meaning should be read from those terms before moving to application.
The nearby context moves from verse 2's "The priests could not enter into Yahweh..." into verse 4's "Then the king and all the people...", so "children" and "israel" belong inside that flow. In 2 Chronicles context, the local focus is covenant, worship, and faithfulness.
A plain takeaway is to answer the verse's own emphasis on "children" and "israel" with trust shaped by these words, not by a vague optimism outside the passage.