What can be done to rectify the situation and bring us back into the promise?
Apart from judicial concerns (not to minimize them in any respect) it requires the machinery of our souls to be rebuilt and thereafter, to be operated on a new basis. That entails enduing God's image with God's Spirit, which we get a taste here and now, and at the catching away, remolding new flesh untainted by sin and the curse as a home for that image. Afterwards, that which is in God's image will walk on for eternity in absolute agreement with God-- on every issue, inclination, desire, and action, everything! That is sainthood.
Because God completes the good work he begins when he infuses his Spirit in the born-again, the born again are considered saints now. Everyone of them.
If all this sounds weird to you, realize that, that is the model of Jesus Christ himself. He walked conceived by Spirit, endued with the Spirit, and in absolute agreement with his heavenly Father in every respect. That is what life as God's image is supposed to look like. It is what heaven will be like. To the degree that one can't embrace this model, he or she will look more like a sinner (supposedly saved by grace) than a saint.
On the other end of the spectrum, I think it is a misconception to adopt Miserable Worm Theology. What we start out as doesn't define us before God, but what we will end up as. It is not humility for the born again to think themselves worms before God, but lack of vision. That won't inspire anyone to walk in the Spirit-filled fullness Christ purchased for us. Since Christ has done so much to make us new, shouldn't we embrace what it is that makes us saints, and be glad, rather than slithering, stuck in an old way of life that's nothing more than yesterday's news?
