I agree with you 100%. That's not inconsistent with what I am saying, though.
I let God forgive the sin. I'm human not divine. I simply choose to not be around people that have shown character flaws like cheating or lying. Call me crazy, to me if they did it once they will do it again. Does that make them bad people? In a general sense no but to me yes in that I do not want to be around them in a close personal relationship where trust is needed.