Moreover...
Moreover, the word "people" in the preceding sentence ("most surely Allah is Gracious to people") refers to the particular group that was raised from dead; while in this sentence it stands for the whole of mankind. This verse has some connection with the next verses which describe the importance of jihad, fighting in the way of Allah - jihad also gives a new life to the nation when it is dead.
A commentator has said that this verse is a parable to illustrate the condition of the ummah - how it remains backward and dies when foreigners bring it under their yoke and keep it under their rule and domination, and how later on it rises to defend its rights and snatches its freedom from that colonial power, and thus becomes alive again.
The following is the gist of his argument: "The verse does not refer to any historical event of either the Israelites (as many traditions say) or others (as some others say). Otherwise, it would have been essential to mention that it happened in this or that nation, or to disclose the name of the prophet concerned, as the Qur'an invariably does in all its stories. Moreover, the Torah also does not mention it in the history of the prophet Hezekial (a.s.).
This proves that the traditions narrated in this connection are from Jewish mythology which were taken over by the Muslims. "Apart from that, there is only one death and one life in this world, as is shown by the Qur'anic words: They shall not taste therein (i.e., in the Paradise) death except the first death (44:56). They (i.e., the inmates of Fire) shall say: "Our Lord! Twice didst Thou make us subject to death, and twice hast Thou given us life " (40:11) .
Therefore, there cannot be two lives in this world. "Obviously, the verse is a parable: A nation was attacked by powerful enemies, who humiliated and subjugated them. The enslaved nation did not defend its freedom and went out of their homes, even though they were in thousands, in great numbers, but they were afraid of death. Thereupon Allah said to them, "Die, the death of disgrace and ignorance". Because ignorance and inertia is death, as knowledge and self-respect is life.
Allah says: 0 you who believe! Answer (the call of) Allah and His Apostle when he calls you to that which gives you life (8:24). Is he who was dead then We raised him to life and made for him a light by which he walks among the people, like him whose likeness is that of one in utter darkness whence he cannot come forth? (6:122).