He came to a realization that “sin is not what you do, but what you are,” and that real forgiveness involved not just taking away guilt for wrong actions, but removing of the roots of sin in the heart of man.
Fred wrote a very good book Behold Your God on the character of God. It is available (3.0 mb PDF file) as a free download here.
A nicely-illustrated revision of Behold Your God (by Gary Hullquist) is available here (3.8 mb PDF file).
I have included one story by Fred Wright that very well illustrates what God had to deal with in light of certain decisions His people made; in this particular case, their decision to take up arms.