Romans 1:16-17 must be read with verses 18-32. "For the wrath of God is revealed from heaven..."
It doesn't follow for people to understand why the gospel is good news if there is no mention for the necessity of it. When they speak about the gospel, they must include judgment and wrath.
Therein is the preaching of the Law. As I said already, the Law brings condemnation. There is no salvation in the Law.
You seem to want to argue, contrary to everything Scripture teaches, that our salvation isn't by God's grace alone; but is instead somehow also improved through our own efforts--after all, the Law is preached to say what we must do; but because we do not do it we stand condemned. Hence the preaching of the Law is for three uses:
1) To curb evil by instructing what is right and what is wrong.
2) To act as a mirror to reveal our weakness and total inability to be just according to God's commandments.
3) To establish a new way of living for the regenerate. That said, see number 2.
By all means the Law is to be preached, but it cannot and does not affect our salvation. No one has ever been saved by the preaching of the Law--for condemnation is unable to save; this should be obvious in that condemnation is condemnation.
Hence, as I've already said: Only Jesus Christ and His Gospel saves. Our salvation is by God's grace alone, through faith, on Christ's account alone.
The Law certainly drives us to our knees in grief, sorrow, and despair; and thus if we rightly know the Law and rightly dread it then the Gospel is all the more sweeter. Honey is all the more sweet when preceded by a bitter flavor.
But Jesus Christ saves. Period. His atoning work is sufficient. Period. God's grace is sufficient. Period.
By attempting to argue the way you are you are edging dreadfully near a confusion of Law and Gospel.
-CryptoLutheran