It seems to me that when a Christian truly understands that we are saved by grace, they forget that they need to obey. When they understand that sin is deadly, they do not also see that there are powers in our world that work to promote sin. When they understand that people can be mentally ill because of body malfunction, they can't understand that there is also demon possession. When they understand that simply obeying law by the book does not count, we need to obey with truth and spirit, they don't understand the need to obey by the letter, too.
We should not get carried away with one portion of scripture, but understand all of God. It is necessary to understand the love of our Lord and our need to express it. It is wonderful to see people who live through the Holy Spirit. But when these things become something that rules out church discipline, when it includes accepting sin, as it has in our churches, it becomes deadly, not good.