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Up to this point Jesus has been speaking about the depths of God's love in action and Jesus was the living, breathing, proof of that, though Nicodemus had yet to understand it. As the discussion between Jesus and Nicodemus continues a sober reality is introduced. Verse 17 began the thought of mentioning God's desire (to save and not condemn) and it raised the idea of divine justice.
Today's text looks deeper at the state of man's heart, through the ages, but now makes direct application to each person in light of God's sacrifice. All religious systems ultimately depend on man doing something to appease their god. The words of Jesus make it clear that man is not capable of doing something to fix the problem of sin, so God has provided remedy.
Now here is where people have trouble and don't understand how God sees man. Jesus tells Nicodemus that man is dead in unbelief and their actions demonstrate this truth. People refuse to come to the knowledge of Jesus because they love darkness. Not my words, they are His. No "that's your interpretation" no "that's judgmental" just a simple look at what He said.
You would think that the one making the assessment who is also The One who would make the supreme sacrifice would have His words considered, but no, people look to avoid His simple conclusions and refuse His gift. Such is the human condition.