feivel,
I agree with you 100%. However I just wanted to add that if a person’s actions are ONLY based on fear of punishment without a love of Hashem and his mitzvos then he will takeh, as bowzer said, freeze and be prevented from making any real change. On the other hand if fear is taken out of the equation and we only act on love of Hashem, then if we decide we’re not in the mood then we’ll stray. That’s where fear of punishment is needed.
Correct me if I’m not quoting correctly: Asei me’ahava she’ain ha’ohev soneh, asei miyiroh she’ain hayoreh boi’et