ikester,
I see that you are showing how the sheep and goats parable fits in with the "saved by grace" theology. I think you are making a lot of sense with it.
However, I am having a little problem understanding it completely.
Are people who come to Christ before they die, not required to be judged as sheep or goats? From what you wrote, it seems that both saved and unsaved people will be judged by that standard and punished in the same way.
James 4:17 Therefore to him that knoweth to do good, and doeth it not, to him it is sin.
Not knowing christ, is not knowing the conditions of sin. So not having the knowledge of sin makes them innocent. So therefore they have a chance at heaven in this judgement.
The problem is that some hear preaching of Christ and sin, yet still don't believe. They don't believe a particular act is a sin. I understand willful disobedience requires severe punishment, but what about those who simply don't see that Christ is the Savior even though they have heard (but not comprehended) the Gospel message? Do they get that second chance after they die?
Example: Buddhists who follow their religion's teaching will meet the requirements of the sheep and goats parable. However, they don't believe that Christ is the Son of God. Of course they will confess that He is once they are at the judgment. So what judgment will they receive?
Why did Christ preach in Hell when He went there? What did He preach? He preached the gospel.
Makes sense...so that these "innocents" will have a chance to be saved. I would say that they have a better chance than those who are witnessed to here on Earth because they will see Christ and Hell for themselves so there is no doubt. However, this seems to be an argument to stop preaching the Gospel so that less people have a chance to reject Him. Let's face it, if you're in a lake of boiling lava and some guy is standing on the shore saying "follow me and I will get you out of there", you're not going to think twice about following Him.
BTW: Could you provide the Bible passages that show Christ did/will preach in Hell?