I won't engage in battle of scripture quotations. I agree with you that the law is presented that way in the Old testament. I agree with you that of course there was forgiveness for violating commandments in the Old testaments (one cannot read the prophets without noticing a rather generous divine forgiveness). I will rather approach this by setting forth a theological response...
This is one of the most thoughtful posts I have seen here in years. Not that agree with you, but you are making sense, and what you present looks far more reasonable than what I (as an outsider) mostly read here.
Thanks for investing the time to write it.
Chair