Psalm 79:4, "We have become a reproach to our neighbors, a scoffing and derision to those who are around us," expresses the utter humiliation and disgrace the people of Israel are experiencing at the hands of their enemies. Let's break down the key elements:

"We have become a reproach to our neighbors..." A "reproach" means a cause of shame, disgrace, or dishonor. It means they have done something (or, more accurately, something has happened to them) that makes their neighbors look down on them. They are now viewed with disdain and contempt.

"...a scoffing and derision to those who are around us." "Scoffing" and "derision" both refer to mocking, ridiculing, and making fun of someone. The people are not just being viewed with shame; they are actively being taunted and laughed at by those who live nearby. Their suffering is being used as entertainment and a sign of their perceived weakness.

In essence, the verse portrays a picture of complete societal humiliation. The people of Israel are no longer respected or feared. They are objects of scorn and mockery to all those around them. This likely follows a military defeat or some other national catastrophe that has left them vulnerable and disgraced in the eyes of their neighbors. It reflects a loss of their standing, reputation, and dignity among the nations.

Contextually, Psalm 79 is a lament, a cry for help in a time of national distress. The psalm describes the desecration of the temple and the slaughter of the people. This verse highlights the additional burden of shame and humiliation heaped upon the suffering of the nation. It adds to the sense of despair and underscores the urgent need for God's intervention and restoration.

In summary, the verse communicates a deep sense of shame, dishonor, and being the subject of mockery by those around them.