But when you think about it, that makes no logical sense. If grace is grace, then you don't have to do ANYTHING to receive it. If something is a free gift, then it is yours whether you use it or not. Now, if somebody deposited $5000 into my bank account, that would be a free gift, whether or not I ever spent the money. But, if they said, "I'll deposit $5000 in your bank account IF you convert to my religion," we're in the realm of bribes, not free gifts.
Of course sin has consequences. But, just because we won't be tortured for all eternity doesn't mean we don't face consequences. If your child disobeyed, would you have to torture them eternally for them to understand that their action had consequences? Hopefully not.
I don't think we are all good. But, neither do I think that eternal torture can ever be a fitting punishment for the wrongs committed in a finite human life. I mean, really, if you believe we all deserve hell, you also have to believe that it's God's fault. After all, we are doomed from before birth. We are condemned to hell NOT because of anything we did, but because of what Adam did. How on earth is that fair? How is that just or merciful? We never had a chance. From the moment we are born, we are condemned to hell if we don't accept certain Christian doctrines. How can it be said, in that context, that we deserve hell, when we never had a chance? A God who would create that situation, and then condemn anyone who didn't hold the right religious doctrines, is not a God I would want to spend an afternoon with, much less eternity.