So you don't believe that Jesus is the Lord of the believer? Do you think that if a person just "believes" in Jesus, but doesn't consider Him Lord that they should submit to, that person is saved regardless?
(if so,) then, what about "unless you believe that I AM, you will die in your sins"? The nature of understanding Jesus as Lord is the foundation for believing in Him. Anyone who says "I believe" and yet does not obey what Jesus commanded (that is, does not consider Him Lord) is fooling himself.
IMO your view of "lordship salvation" is legalistic by nature, since you seem to accuse anyone (ie MacArthur) who teaches it of teaching legalism. In reality, no one can "MAKE" Jesus Lord. Either He is, or He isn't. There is either submission to His words, or there is a disregard of them. 1 John and James explicitly teach that if a person is not actually following Jesus and obeying His commands, such a person is not born of Him. The nature of faith in Jesus includes a desire for healing of the spirit, deliverance from sin, and power to obey His commands. If a person is not hoping for freedom from sin (in this life), then his faith is suspect, because such a person is still ignorant of gospel truth. Does reconciliation with God give a person power to live a life of devotion to God?
Holiness, that is, the power to live a godly life, is part of the free gift of eternal life in Christ, and everyone born of God has that gift. People having Jesus as Lord aren't working for their salvation, but they are working it out (Phil. 2:12-13). Righteous works are the result (the effect) of someone who believes in Christ. To bear the fruit of the Spirit is the only way one can know for certain that he is born again (Gal. 5:16-25, Rom. 8:12-13).