Dear Qwerty,
“..came to the conclusion that the Rebbe is “G-d clothed in human form.” ”
There is an esoteric debate about the what is goodness/righteousness in this world. The main delineator is can we accept the tzaddik as something similar to the phrase you put in quotes. The mainstream view of today’s (And the last 200+ years.) kabbalistic thinkers is in the positive. We can discuss if Chabad should be promoting kabbalistic concepts to the laity. But they are not far out, off the wall, rejected concepts. If you want to understand why it’s okay, you would have to study these topics yourself.