It is not saying that any sin is okay, rather, we still live in the sinful flesh, wherein the sin nature still abides, but is to not have dominion....For sin shall not have dominion over you...
Sorry but this needs an answer.
The way you string thoughts, understandings, beliefs, and yes even Scripture together, makes it very difficult to break down just what it is your saying which is wrong, but there are time when you do manage to say nothing which is correct, even though it sounds so very, very good.
I will number your statements in order to be better able to answer each in turn.
Your statement
1) rather, we still live in the sinful flesh,
You are partially correct, we do live in a body which is made up of flesh, but that is where the difficulty arises, you see, when the term "The Flesh" is used it is not speaking of our Physical Bodies, its speaking of OUR Sinful Natures inherited from Adam.
Paul describes this (Flesh) = (Human Nature) = (The Old Man) so when he says, first,
Gal. 5:24
And they that are Christ's have crucified the flesh with the affections and lusts.
There it is right there, "the Flesh has been Crucified with the affections and lusts."
So we see right off the bat, the Flesh has been Crucified, as well as the sins,
next we see Paul saying.
Rom. 6:6
Knowing this, that our old man is crucified with him, that the body of sin might be destroyed, that henceforth we should not serve sin.
So you see right there, he has said the same exact thing in two different letters to two different peoples, the Galatians, and the Romans, the words themselves are essentially different but with exactly the same meaning conveyed to each group of Believers.
In essence Paul has said.
The Body of Sin, The Old Man, The Flesh, The human Nature of a man inherited from Adam is DEAD, it was Crucified with Christ, through our Baptism, and when we were raised in the Likeness of His resurrection we were raised unto Newness of Life in the Spirit.
2 Cor. 5:17
Therefore if any man be in Christ, he is a new creature: old things are passed away; behold, all things are become new.
Eph. 4:22
That ye put off concerning the former conversation the old man, which is corrupt according to the deceitful lusts;
Your Statement
2) wherein the sin nature still abides, but is to not have dominion
I have just provided Scripture which effectively refuted that statementthe sum total of them asserting (We, Believers in Christ are Dead to the Flesh and that Sin has also been destroyed.
This is actually how sin was taken care of.
Rom. 8:3
3) For what the law could not do, in that it was weak through the flesh, God sending his own Son in the likeness of sinful flesh, and for sin, condemned sin in the flesh:
4) That the righteousness of the law might be fulfilled in us, who walk not after the flesh, but after the Spirit.
In verse 3 we see the how, Sin itself, and Sin in the Flesh were both destroyed when Jesus took and nailed them to His Cross for us, this was done, verse 4, "That the righteousness of the law might be fulfilled in us," because now through OUR Baptism we, "who walk not after the flesh, but after the Spirit."
Have been
Rom. 6:7
For he that is dead is freed from sin.
Who is dead but The Old Man, The Flesh, Sin, Sin in the Flesh.
But we are alive unto God through the indwelling of the Holy Spirit and freed from Sin?
Gal. 2:20
I am crucified with Christ: nevertheless I live; yet not I, but Christ liveth in me: and the life which I now live in the flesh I live by the faith of the Son of God, who loved me, and gave himself for me.
Your statement
3) but is to not have dominion....For sin shall not have dominion over you.
You are 100% correct on this one but, it isn't because anything which we have done.
Tit. 3:5
Not by works of righteousness which we have done, but according to his mercy he saved us, by the washing of regeneration, and renewing of the Holy Ghost;
Regeneration and Renewing are both references to OUR Baptism, where we were Born Again of the Spirit.
Rom. 6:4
Therefore we are buried with him by baptism into death: that like as Christ was raised up from the dead by the glory of the Father, even so we also should walk in newness of life.
Gal. 5:18
But if ye be led of the Spirit, ye are not under the law.
Why are we not under The Law?
Rom. 7:4
Wherefore, my brethren, ye also are become dead to the law by the body of Christ; that ye should be married to another, even to him who is raised from the dead, that we should bring forth fruit unto God.
Gal. 2:19
For I through the law am dead to the law, that I might live unto God.
Therefore
Dead men Cannot sin, because,
1 Jn. 3:4
Whosoever committeth sin transgresseth also the law: for sin is the transgression of the law.
And we are Dead to the Law, and the Flesh where sin resided in our sinful Natures, The Law has been written on our hearts and because of all of that and the Holy Spirit Dwelling in us.
1 Jn. 3:9
Whosoever is born of God doth not commit sin; for his seed remaineth in him: and he cannot sin, because he is born of God.
And some statements just need a book to be written.