Here is part 1 introducing the topic of the word "midst" (tavek in Hebrew) and its covenant connections. I just find the placement of God/Jesus/temple/the word in the midst too often in the scriptures to not have any meaning beyond mere position. This post considers some more examples. We start out with an example in D&C.
The which is in all things, which giveth to all things, which is the by which all things are governed, even the of God who upon his throne, who is in the bosom of eternity, who is in the midst of all things. (D&C 88:13)
Honestly, I don't fully understand half of the verses in D&C 88. I appreciate it nonetheless, it is a spectacular chapter. But the metaphysical implication of God being in the midst of all things? I have no idea. In this case it is a revelation given to Joseph Smith in English so we don't have the Hebrew 'tavek' origin with its covenant implications. But I still don't think that the language of the revelations to Joseph Smith is detached from the language in other standard works. Perhaps "all things" in this verse can be summed up by heaven and earth that God created in the beginning. God dwells in the midst of both heaven and earth (at least in its paradisaical state) as we shall see next.
God dwelling in the midst of heaven
21 I dwell in the midst of them all; I now, therefore, have come down unto thee to declare unto thee the which my hands have made, wherein my excelleth them all, for I in the heavens above, and in the earth beneath, in all wisdom and prudence, over all the intelligences thine eyes have seen from the beginning; I came down in the beginning in the midst of all the intelligences thou hast seen.
22 Now the Lord had shown unto me, Abraham, the that were organized before the world was; and among all these there were many of the and great ones;
23 And God saw these souls that they were good, and he stood in the midst of them, and he said: These I will make my rulers; for he stood among those that were spirits, and he saw that they were good; and he said unto me: Abraham, thou art one of them; thou wast before thou wast born.
In the very first chapter of the Book of Mormon, Lehi sees in a vision...
And it came to pass that he saw One descending out of the midst of heaven, and he beheld that his was above that of the sun at noon-day. (1 Nephi 1:9)
God dwells in the midst of heaven and its hosts.
God dwelling in the midst of Zion
And Enoch and all his people with God, and he dwelt in the midst of Zion; and it came to pass that Zion was not, for God received it up into his own bosom; and from thence went forth the saying, Zion is Fled. (Moses 7:69)
And behold, this will I establish in this land, unto the fulfilling of the which I made with your father Jacob; and it shall be a . And the of heaven shall be in the midst of this people; yea, even will be in the midst of you. (3 Nephi 20:22)
And then shall the of heaven come down among them; and also will be in the midst. (3 Nephi 21:25)
When the power of heaven comes down on earth in a future Zion, God will be there in the midst, just like He was in the city of Enoch.
So God is in the midst of all things, both heaven and earth. We have seen in part 1 how the midst can be related to covenants and division. But we also saw that the Savior repeatedly was in the midst of the people in 3 Nephi in a more harmonious setting. Similarly, when those who keep the covenant are gathered and accept the Savior, he will be in their midst as the center of worship instead of a source of division. Perhaps we need to wait for a future Zion to have Him in our midst physically, but there is much we can do today to have Him in our midst spiritually, at least in our personal lives.