Laz,
I think Pilgrim gave you a great answer. We do not want to be so broken that we forget the wonderful blessings and victory we have in Christ and neglect to rejoice in all that is ours in Christ. Yet, we also need to remember how sinful we are so that we will walk humbly with our God and not to think too highly of ourselves, but think of ourselves with sober judgement. We know that if we got what we deserved, we would be condemned eternally.
If we only see one side of this we will get into trouble. If we only think about how awful we are we could become morbid and be totally ineffective and self absorbed.(Martyn Lloyd Jones calls it morbid introspection.) If we only think of our position in the heavenly places, seated with Christ, we might forget we are in a daily battle with the world the flesh and the Devil and not be on guard. But thinking of what Christ has done and our position in Christ gives us great encouragement and hope when we go through difficulties, trials and testings here.