Judge not?

The main theme of today's meetings was on the life of Christ. I'd like to focus on one of the talks in Sacrament meeting that claimed to be about one of the most misquoted passages from the Bible.

According to the speaker, Matt. 7:1-2, is one of most misquoted passages from the Bible--often in politics--but more often to justify sin.

1 Judge not, that ye be not judged.
2 For with what judgment ye judge, ye shall be judged: and with what measure ye mete, it shall be measured to you again.

The speaker continued posing a question as to what this can possibly mean, given that, shortly thereafter, the Lord commands us to judge in Matt. 7:15-20:

15 Beware of false prophets, which come to you in sheep’s clothing, but inwardly they are ravening wolves.
16 Ye shall know them by their fruits. Do men gather grapes of thorns, or figs of thistles?
17 Even so every good tree bringeth forth good fruit; but a corrupt tree bringeth forth evil fruit.
18 A good tree cannot bring forth evil fruit, neither can a corrupt tree bring forth good fruit.
19 Every tree that bringeth not forth good fruit is hewn down, and cast into the fire.
20 Wherefore by their fruits ye shall know them.

That is, in order to "beware" we must make some sort of judgment. Christ tells us that the judgment should be made according to their fruits. But what exactly is this judgment?

The speaker then brought attention to the words of one of the current General Authorities of the Church on the subject. I do not recall who it was, but the basic idea was that we should never make eternal judgments, which would be something like deciding that a certain person is surely going to go to heaven or hell. However, we must make daily temporary judgments when we decide with who we will associate, with who we want our children to associate, with who we will do business, etc.

I think this principle goes hand in hand with the commandment we have received to forgive. Matt. 18:21-22:

21 Then came Peter to him, and said, Lord, how oft shall my brother sin against me, and I forgive him? till seven times?
22 Jesus saith unto him, I say not unto thee, Until seven times: but, Until seventy times seven.

D&C 64:8-11:

8 My disciples, in days of old, sought occasion against one another and forgave not one another in their hearts; and for this evil they were afflicted and sorely chastened.
9 Wherefore, I say unto you, that ye ought to forgive one another; for he that forgiveth not his brother his trespasses standeth condemned before the Lord; for there remaineth in him the greater sin.
10 I, the Lord, will forgive whom I will forgive, but of you it is required to forgive all men.
11 And ye ought to say in your hearts—let God judge between me and thee, and reward thee according to thy deeds.

How can we possibly hold malice in our hearts and yet leave it up to God as to the fate of the one that has offended us? Everyone makes mistakes. Most have no special ill will towards us. Let's just let things go and move on.