When should you elevate Hashem?
Radak: When you will see what he does to His lovers.
Malbim: When He dwells among you, and it is as if His residence is on Har Kodsho below. Then, His residence is not in Shamayim, and the land is [merely] His footstool. Therefore, it does not say "Kadosh Hu" (like verse 5, which implies that He is separated), for He is amidst us.
What is "Har Kodsho"?
Radak: It is Har ha'Moriyah, in which was the Beis ha'Mikdash. It is Kadosh, and its place is Kadosh. "U'Mikdashi Tira'u" (Vayikra 19:30) - when you fear the Bayis, you should fear the One who commanded about the Bayis and chose it. When you bow to the wall of the Bayis, you should bow to the One who was Mekadesh the Bayis and put your goal to remember Hashem and arouse the heart to Him.
Why does it say "Ki Kadosh Hashem Elokeinu"?
Rashi: Via being meticulous with His Tzadikim, He is sanctified in the world. "V'Nikdash bi'Chvodi" (Shemos 29:43) - bi'Mchubadai (those who honor Me).
