mercy not sacrifice

I was listening to "the Bible Experience" this morning while working out and Jesus (once again) said something in Mt 12:7 that really got my wheels turning. (I was on the stationary bike..ha) He said, "I desire mercy, not sacrifice."
Wow, do I show enough mercy? Have I, while in the mindset of sacrificing, perhaps with salary, fasting, ministerial duties, etc, missed opportunities to show mercy? I can see how sometimes sacrifice could turn selfish. We can tend to then get judgemental of others who are not doing as much as we are. Or we say, "if they only knew how much I have sacrificed." This is a wrong paradigm and an abuse of true sacrifice. It turns the focus from God to ME.
I received a phone call from someone asking if C3 confronts sin in our church. (I knew he had a story to tell and I let him tell it after I answered his question) I told him that it depends. (dramatic pause for effect) If someone new comes into our church...NO....it's the Holy Spirit's job is to convict them. In other words, mercy and love are shown to them as they begin seeking God. How can we expect to hold them to a standard that they don't even know exists? On the other hand, if someone claims to be a believer and are a part of this body (church), then yes, absolutely. It will be done with love and mercy, but it is the responsibility of the leadership to do so, for their sake and the sake of the church. I want to have both mercy and sacrifice.