"you are people" would only be (hypothetically) correct grammar in the following way:
"and all of you are children of the most High" (Ps. 82:6).
But I think that all attempts to utilise Bible grammar outside the Bible, or to try and "correct" it now is an exercise in futility, vanity and error.
1. The KJB was made a time when English was at its height.
2. The men who made the KJB were at the apotheosis of scholarship.
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