Condemnation is being given an identity based on our performance. Paul looked a
t his performance and cringed. He had given in. His renewed resolve and good intentions failed. Again. And now he hears his performance yelling out his identity – “wretch” (Romans 7:15-24).
Paul Zahl says it this way in his book Who Will Deliver Us:
“If I do 
enough of the right things, I will have established my value. Identity is the sum of my achievements…In Christian theology, such a position is called justification by works. It assumes my worth is measured by my performance. Conversely, it conceals a dark and ghastly fear: If I do not perform, I will be judged unworthy.”
We use other words than “wretch” when our performance condemns and pastes an identity on us. Loser. Failure. Fake. Unworthy. Different words but we discover the same dilemma—we can never perform our way out of condemnation. The good news of the gospel is our identity is now based on the performance of Jesus. It is grace alone that changes the wretch into a saint.
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I believe you have hit the nail on the head. So many of our churches and ministries help create this environment where people derive value through performance. I look back and wonder where, through my leadership, I have helped walk those I lead through those doors toward finding their worth through performance. “If I do enough of the right things, I will have established my value” wow, it does fly in the face of grace, of finding our true value and identity in who Jesus says I am. I only pray that the Lord will use me to help set others free from the need to perform in order to find value.
I heard a “true” story ion the pastor of a mega church a mile from my house. He told my not yet friend that “They need to keep people in the building as much as possible,so that they will join the church” This is an example of so much of what has gone wrong.