Context is everything in the Bible. Don't go saying a single verse without telling the story behind it first. The Bible was split into verses AFTER it was written SOLELY to organize it.
Also, many, many people, even many born-again Christians, talk about the love and mercy and grace that God gives. I'm glad that He IS a God of mercy, love, and grace. However, many people do not realize that this is only HALF of who God really is!
God is Love, but He is also just. When God created man, He let him have a choice of whether to love Him or to forsake him. If the creation did not have a choice, then what glory would come to God for it? He would have just created a bunch of programmed robots!
God also gave angels freedom of will. That is why His former chief angel, Lucifer, could choose whether to love God or to lust after his own desires. Lucifer, through extreme pride, wanted to be more powerful than God, his creator. Lucifer was so cunning, he even convinced 1/3 of God's angels (who had never known sin before) to join him in open rebellion. Lucifer didn't understand God's love for him, and he thought he could do a better job of running things than God.
Well, it appears that God created the natural world AFTER the spiritual world. It stands to reason that the concept of time was born when the first traces of matter were made, since Einstein's theory of General Relativity states that time and matter are COMPLETELY inseparable. (This also makes sense later in the Bible, when in Revelations God says He will do away with the material world and time itself will, therefore, cease to exist [the End of Time concept])
When God creates human beings, He loves His creation enough to let man choose whether to love Him back. Lucifer, a.k.a. Satan, who was banished from heaven and hates God, saw a chance to hurt his enemy. So, Satan appeared to Eve and deceived her. Then she convinced Adam to sin along with her. Thus Adam and Eve defied their own Creator! Considering that God is the God of Love, it's hard to imagine how much it must've hurt for Him to watch His creation call Him a liar and disobey His command by eating the forbidden fruit.
Since God is a God of justice, and of mercy, and God already knew that man would fail Him, God started laying out a plan that would bring Him great glory in the end. He showed Adam and Eve that sacrifice is the only way to redemption. The fig leaves that Adam and Eve sewed together just didn't cut it; works alone wouldn't save them from what they deserved! Only God's mercy could do that. Did you know that God killed the first living creature as a sacrifice for man's sin? This is a type and a forerunner for the complete plan of Salvation through Jesus Christ.
Think about it. If you commit a crime, it doesn't matter how many hours you've volunteered to help out in the community, or how much time you've spent helping out disabled kids. You owe a debt to society that must be paid. Lets say that you're tried and found guilty. You can either pay a $200 fine, or go to jail for two months. Let's also say you're broke, and you have no way to pay for the fine. What can you do? Unless someone were merciful enough to pay your debt for you, you're going to prison for a while. It's the same way with works vs. salvation.
Every single person, at some point in their life, becomes aware and responsible for their eternal destiny. These people, you and me, everyone who is no longer shielded by innocence, would be found guilty of the curse of sin if we were given a fair trial. God Himself said that the wages of sin is death (which, in the Bible, usually means separation from God, not necessarily physical death). So, if we were to pay God ourselves for our life of rebellion and sin, we would need to do three things:
#1: We would need to physically die.
#2: We would need to go to Hell.
#3: We would then need to stay in Hell. Forever. Pretty bleak. I'm guessing this is a consequence of the "End of Time" concept. Thanks a lot, Einstein.
Luckily for humanity, God IS NOT pleased by the death of the wicked. That is why the Son, Jesus Christ, died on the cross. He was the ultimate, perfect sacrifice; God Himself, reduced and humbled in human form, the Creator, suffered and physically died for His creation! This is the perfect plan of salvation, it is God showing that He can do the impossible; He reestablished a relationship between sinful man and their Holy God. All we must do, as sinners, is, by faith, believe His promise, and He will pay our debt of sin for us. THAT, my friends, is how God gets ultimate glory. He deserves it, in my opinion.