We see most clearly when our eyes are open. When we are blinded by ambition, greed and lust for power we cannot see reality staring back at us. I must also add that the refusal to acknowledge our sinful state vastly increases our sin. When we acknowledge our proclivity for wickedness we can be on gaurd against it. When we deny its influence it is given free reign.
Yes, that is a good analysis.
When one realizes that one is a sinner saved by grace, it is humbling as well as empowering.