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That's are good quotes, and a good explanation of your views. Paul is speaking about the Works of the Jewish Law, however, and that's important to keep in mind. I think we're having some miscommunication, so let's see if we can work around that. To begin with, correctly speaking, we are not saved by our Faith, right? We are saved by God, correct?

Where we agree with regards to salvation is that we are saved, not that we save ourselves. That is, God saves us, we don't have the power to do it ourselves. Both this life and the next are gifts from God, freely and graciously given. (I think the passive voice in "are saved" seems to be misread in many cases as a past tense, but the appropriate reading seems to be that we are the objects of God's saving Grace.)

Where we have room for discussion is in the role of the believer in the economy of Salvation. We believe that Christ died for our salvation, and yet, none of us understand this to mean that human beings will all automatically go to Heaven, regardless of their beliefs and actions. Rather, we believe that the individual too has a responsibility in the economy of Salvation, that is, we must accept Christ's gift, we must respond to God's call, we must Choose Life. How do we do this?

The Protestant Formulation is that our response is Faith alone. There is much that suggests this is a formulation with serious drawbacks. To begin, it's not Scriptural, and in fact, it flies in the face of Scripture. Secondly, we must read it apart from the witness of Scripture which tells us that we will not be saved without mercy, without love, without forgiveness of others, and to be blunt, without works. How do you resolve this conflict? That is one of the questions that is being asked here. The author of the article asserts that "good" Protestants do so by defining faith in such a way as to include hope and love. He suggests that many Protestants, however, make an honest mistake of not defining Faith in this way, but rather see it as an intellectual assent only, and he argues that such an understanding is dangerous.

It seems like it would be a better formulation to say that we are saved by grace through faith and love, or through a faith that works in love. The appropriate response on the part of the creature to the Love and Mercy of God is not a mere belief in God, but rather Love of God, gratitude for his works, and Love of our fellow human beings, who are created in the image and likeness of God, and whom are also the objects of God's Love. Perhaps you understand these terms to be implied in the formula, "salvation by faith alone"?

From a Catholic understanding, God does not compel those who do not love Him to spend eternity in his presence. We've seen Matthew 25: 31-46, the judegement scene described by Christ as a separation of the Sheep and the Goats. Notice that God's command to those who did not show mercy to the suffering is: "Depart from Me." I understand this to mean that hell is a separation from God, and it is the choice made by those who do not love God, in this case through Love of fellow human beings. Notice that elsewhere in Scripture, Heaven is described as a place prepared for those who love the Lord, and Scripture repeatedly tells us that God is gracious to those who love Him and keep his commandments. Simple belief is not enough, rather we must Love God and our fellow man. Notice in the Judgement scene described in Matthew, that everyone calls God, "Lord," and yet it is on the basis of whether they have shown compassion to the suffering or not that they are either go to God or are dismissed from Him.

Do you understand compassion, mercy, and forgiveness to be implied in the term, "fatih alone"? If so, then we probably have little disagreement, although I might point out that such an understanding doesn't follow from the statement, "saved by faith alone", and there appear to be many who understand these things to not be part of that formulation.

"Blessed is a man who endures trials, because when he passes the test he will receive the crown of life that He has promised to those who love Him.--James 1:12

... the witness of Scripture which tells us that we will not be saved without mercy, without love, without forgiveness of others, and to be blunt, without works. How do you resolve this conflict?

The more Protestant formulation is that God requires faith from men/women ... that they should be saved ...
John 6:28 Then said they unto him, What shall we do, that we might work the works of God?

29 Jesus answered and said unto them, This is the work of God, that ye believe on him whom he hath sent.

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Hebrews 11:6 But without faith it is impossible to please Him, for he who comes to God must believe that He is, and that He is a rewarder of those who diligently seek Him.
Having then faith in Jesus Christ, ... the believer will perform works which are pleasing in God's sight.

Such is the promise of Jesus, Himself ...
John 14:12 Verily, verily, I say unto you, He that believeth on me, the works that I do shall he do also; and greater works than these shall he do; because I go unto my Father.
Such is not difficult to accept, ... since, as believers in Jesus Christ, ... we are re-made in Christ's image ...

Our old life is passed away ... God makes everything about us new ...
2 Corinthians 5:17 Therefore if any man be in Christ, he is a new creature: old things are passed away; behold, all things are become new.
The scriptures go on to say that God, Himself, will finish the work of salvation which He has begun in us (believers).
Philippians 1:3 I thank my God upon every remembrance of you,

4 Always in every prayer of mine for you all making request with joy,

5 For your fellowship in the gospel from the first day until now;

6 Being confident of this very thing, that he which hath begun a good work in you will perform it until the day of Jesus Christ:
Now ... as new creations in Christ, we are, indeed, called upon to live according to the salvation which has been given unto us.

We (believers) love and obey Him, not to obtain salvation ... but, because He has loved us ... and has saved us.
1 John 4:19 We love Him, ... because He first loved us.