How Far Does Grace Reach? in God, With Skin On

These are confusing times in Christianity. We are taught to love one another, to accept everyone, and judge no one. The Golden Rule applies to everyone, except those of different race, religion, or creed. At the heart of the issue is Grace. How much and how far does it reach?
An interesting side note to this story is when God told Moses that the death angel would pass through Egypt and kill all the firstborn of the house unless there was blood from a lamb applied to the doorpost. God did not say, the sign of blood only applied to the children of Isreal. It came down to whosoever believed.
The death angel did not look at the condition of those in the house, he only looked for the sign. And it is the same way today. While God looks at the hearts of man, He looks more closely to see if the blood has been applied. The blood does not make one perfect, it merely changes the way God sees us!