4) Your concept of God is transactional----'Follow the rules---that's what you need to do to be saved or sanctified.'  Establishing a relationship with God implies an actual change of consciousness---of knowing that God has invited us to participate in his life---in his oneness.
The Eastern Church has had this idea way before the more pragmatic West.

5) The Church was much more democratic in its earliest days than today.  From the APOSTOLIC TRADITION, a work attributed to Hippolytus---who insisted that every bishop is to be chosen 'first of all by the people' and then by the assembled bishops.  Jesus did not found a church to be an imperial monarchy.  That sad form of governance came as a result of the medieval age.  By the way, Protestants are Christians, too.