> Circumcision is an absolutely fundamental rite of Judaism.
Offering animal sacrifices in the temple was once an absolutely fundamental rite of Judaism. And that changed. At times, halachic scholarship/philosophy/politics reaches decisions that some commandments (mitzvot) can be followed/maintained symbolically, or semi-symbolically rather than literally. It is conceivable this may happen with circumcision. I mean, the point of circumcision is to signify the covenant of Jehovah with Jews (or with Abraham); it is not the lack-of-foreskin that is the point.
> Every Jewish male is circumcised, as far as I know
You know wrong. Some - not many, but some - Israeli Jewish parents eschew circumcision.