Psalm 78 presents a historical account of God's dealings with the Israelites, highlighting their repeated rebellion despite His faithfulness. It recounts God's miraculous acts, such as leading them through the Red Sea and providing food and water in the wilderness, contrasting these with the people's lack of trust and disobedience. The psalm emphasizes the importance of remembering God's works and the consequences of forsaking His covenant, ultimately showing how God, though angered by their unfaithfulness, chose Judah and David as leaders for His people.