My little brother has really grown up to be someone I admire, I'm reminded of how wise he is by a recent post on his blog.
He quotes Spencer W. Kimball:
Jesus saw sin as wrong but also was able to see sin as springing from deep and unmet needs on the part of the sinner. This permitted him to condemn the sin without condemning the individual. We can show forth our love for others even when we are called upon to correct them. We need to be able to look deeply enough into the lives of others to see the basic causes for their failures and shortcomings.
I had an experience a few years ago that forever changed my views on repentance, which goes along nicely with what Adam said- repentance isn't about being punished for our sins. It's about being able to move past the things we do that halt our personal growth.
It's not a crime and punishment sort of thing. I don't think God's laws work that way. It's about healing and growth so that we can become happy, fulfilled people.
I really like the Kimball quote because THAT is exactly why we don't judge other people. If someone is struggling in some way, instead of looking at them and saying, "well, I need to stay away from them, they're doing bad things", we say, "how can I help this person get through this challenge".
Jesus taught us to love, not judge.