I do not entirely agree with your categorization in that I recall Jesus saying that He was not here to repeal the law (not even one "iota" if memory serves).
I do understand your point about those in Category 3 (among who I count myself). 'Pod
Not "iota" but "jot and tittle". He said he came to fulfill the law, and he did that by dying on the cross.
Colossians 2:13-18
When you were dead in your sins and in the uncircumcision of your sinful nature, God made you alive with Christ. He forgave us all our sins, having canceled the written code, with its regulations, that was against us and that stood opposed to us; he took it away, nailing it to the cross. And having disarmed the powers and authorities, he made a public spectacle of them, triumphing over them by the cross. Therefore do not let anyone judge you by what you eat or drink, or with regard to a religious festival, a New Moon celebration or a Sabbath day. These are a shadow of the things that were to come; the reality, however, is found in Christ.Category 2 people believe that Christ's death wasn't enough and they are bound to fulfill the requirements of the law (at least strive to) in order to be saved. Even though Paul specifically said "do not let anyone judge you" they continually measure themselves and others against the laws, rules, etc. that are extracted and inferred from scripture.
A category 3 person realizes that the laws and rules found in scripture are a lamp to his feet and a light for his path, but that he will not be ultimately judged by how well he followed the jots and tittles, but by how intently he contemplated Christ's love for him and let it transform his heart. That person loves other people because of Christ's love not in order to enjoy Christ's love.