Your view resounds with the current emphasis being taught by the "Emergent Church Movement"; toleration. There is an excellent article on The Highway that deals with this issue of "judgment" which you can read here: Is It Right to Judge?. Here are the author's opening remarks:

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THIS QUESTION—“Is t right to judge?”—is one that puzzles many sincere Christians. A careful and open minded study of the Bible makes it clear that concerning certain vital matters, it is not only right but a positive duty to judge. Many do not know that the Scripture commands us to judge.

The Lord Jesus Christ commanded, “Judge righteous judgment” (John 7:24). He told a man, “Thou hast rightly judged” (Luke 7:43). To others, our Lord asked, “Why even of yourselves judge ye not what is right?” (Luke 12:57).

The Apostle Paul wrote, “I speak as to wise men; judge ye what I say” (1 Corinthians 10:15). Again, Paul declared, “He that is spiritual judgeth all things” (1 Corinthians 2:15). It is our positive duty to judge.
He immediately begins his article with the subject of "False Teachers and False Teaching" which is our subject here.

Martin Luther is known for being one who didn't mince words and he stated his policy regarding heretics and heresy in this way:

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"I am not permitted to let my love be so merciful as to tolerate and endure false doctrine. When faith and doctrine are concerned and endangered, neither love nor patience are in order.... when these are concerned, neither toleration nor mercy are in order, but only anger, dispute, and destruction - to be sure, only with the Word of God as our weapon."
In His grace,

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simul iustus et peccator

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