Transcendence and Immanence of God

It's interesting that I've had several conversations lately with different people about the transcendence and immanence of God. They were very good conversations. I'm struck by the fact that we as humanity do not know how to fully understand that God can be both at once. It's one of those mysteries.
Sometimes we veer to the side of immanence to the point that we forget His transcendance. We talk about Jesus as our friend. We wear shirts that say, "Jesus is my homeboy." We treat Him as though he just another human being that we can toss around at will. We take His lovingkindness and grace for granted in the way that we approach worship. It becomes a carefree, come-just-as-you-are affair. Our prayer suffers because as we come boldly to His throne we forget His greatness and power. Our small view of Him gives us a weak faith.
On the other hand we can jump over to an understanding of His transcendence to the neglect of His immanence. When we read the command to love God, we translate that as simply "obey God." Our prayer suffers because in our understanding of His holiness and our lowliness we think that He does not concern Himself with our day-to-day needs. We conduct our lives in fear alone.
This is so hard to get, but we must understand that God is not only holy, high and lifted up, but also loving, near to the humble. The God who is too holy to tolerate sin is also the God who clothed Himself in flesh to become the sacrifice for sin. He is the God who said "come unto me, all who are weary and heavy laden." The God who is near to the broken-hearted. The God who said, "I am God, and there is none like me." The God who said, "kiss the Son, lest He be angry."
I fear that in most evangelical circles the danger is to forget God's holiness. I think I have been at both ends of the spectrum from time to time.
One friend has spent most of her life focused on God's immanence. As He has been teaching her about His holiness, it humbles her so much that she feels that she can do nothing before Him. The Job syndrome: "I have heard of You, but now I have seen You. Therefore I cover my mouth and abhor myself and repent in dust and ashes." We need more of that, as long as we understand that He has made a way for us to approach Him.
Another friend spent most of her life focused on His transcendance. When she read the command to love God, to her it meant to obey God. It never occured to her that there could be a wonderful joy in knowing and loving God. Loving God not merely in her obedience, but also with her affections, with her whole being. God is near, we can talk to Him at any moment.

"The first and greatest commandment is this: Love the Lord your God with all your heart, all your soul, all your mind, and all your strength."
I think this verse encapsulates the issue in a way that I have never thought of before.