hypocrisy

The next section in "Unchristian" deals with hypocrites in the church. The church is seen by many as hypocritical, saying one thing but doing another. This has been one of the objections i've heard raised, and i'd dare say the church at large has recognized this at one point or another. I remember growing up and in youth group they'd say "your friends won't want to be christians because they think we're hypocrites". And it was responded to in different ways.
Reaction #1:
Act better. Walk the walk. Be the best person possible. Let them have no room to criticize you. We're right, we'll show them we're right by our rules and actions.
There are varying degrees of prudishness and isolatedness involved in this response. However, almost no matter where on this spectrum you are, you often end up in a legalistic kind of religion..there's rules, and i must follow them. This is hardly attractive for people who are looking for a free and meaningful life. (Yes, it's true, people are not just looking for absolutes and standards!)
Reaction #2:
Yes, of course we're hypocrites. They can't be expecting us to be perfect all the time. That'd be silly. We just do our best, you know.
However, this just leads to the escalation of the problem that's already there. "Those christians say they believe this, but are totally unwilling to even try to act like it".
Reaction #3:
They say we're hypocrites. But that's just dumb. We're not. Christians are the best people I know. Besides, they have nothing to say.
Simply, this isn't going to work because it will breed more isolation and "us v. them".

At first I was worried about what "Unchristian" was trying to present as a solution to all this...it sounded a little like Reactions 1 and 2 a bit mixed. And i'm still not sure they have quite figured it out for us, but it makes more sense than the 3 above reactions.
Yes, we do believe in some pretty high standards.
Yes, we are depraved and often can't fulfill them.
That's where Christ comes in.
We rely on His strength, and continually recognize His grace and love.
And they sum it up with a quote from Tolstoy "Attack me, not the path I take. If i stagger home drunkenly, does that make the path i follow any less right?"

It makes sense, but i'm not sure i'm quite satisfied with this. Not sure what more i'm looking for.. comments welcome, as always.