Hi Royston,
Just my opinion, but I think the answer to your question lies in the question itself (I always wanted to say that

)
Loving ourselves and accepting ourselves
by the grace of God means that we will love and accept only those things about ourselves that come from God and are not in contradiction with His will. To love and accept anything else would not be by the grace of God.
I read someplace that we can only make great spiritual strides when we see ourselves as we really are. In other words, when we stop deceiving ourselves as to who and what we are, and see ourselves in the light of the truth of God. In this way, we become aware of those desires and those "parts" of ourselves that are barriers to our relationship with Christ.
The path to true spiritual healing and love is unity in Christ. Anything that contradicts God's will within us is a barrier to that union. Of course, it is truly a blessing and unmerited grace to discern the will of God, to see what we hold on to that contradicts His will for us, and to obtain the strength to reject those things that are contrary to His will. It is only by God's strength that we choose the good, and He will not force Himself upon us.
Just my humble opinion.