We have to first realize and know "what we are", and be in fear of Him until then, cause that fear will bring you to the first point of truth, that the law is and shows... Anyway,and that first part of truth is: "who and what we are" (miserable sinful wretches, ect, of very little good use, or worth, or value, at that time, ect, bad most of the time, ect)...
That is "who or what we are", but, then, God also greatly wants us to know "how He see's us, anyway, in spite of or despite that", and that would be the other stuff you mention...
And it's a "mystery"... Being what we are, how can God, (or any "god/God", for that matter), Anyway, being what we are, how can God,"see" "us" the way He does... love us so very much despite or in spite of what we are, ect...
What we are, vs, How He see's us... (anyway, ect)...
And we should not ever forget either one, not forget who and what we are, but also not forget how He see's us anyway, despite that, ect... It's hard to hang onto both or be mindful of both at the same time, but that's what we must do and be mindful of though... Both truths must be solidified in our hearts, minds, person(s), and our very being, both, at the same time, all the time, lest we mess up or be messed up...
Maybe He see's some kind of "potential", who knows, but I think even greater than that is how He loves us even if we have no "good potential" in us or to us at all...
We try to figure it, or this out, this, us, and Him (and them), ect...
Can we figure it out though...?
What do you think...?
God Bless!