The Wages of Sin is Death? or Not?

I recently talked to a friend of mine who was struggling with health issues.  As we talked, I shared my opinion that physical ailments have origins in our thought and from unresolved issues.  As we continued to talk, they shared with me that they recalled going in a church as a teen and seeing a sign on the wall that said, very boldly,

The wages of sin is death

Imagine what it would be like to see that message as an impressionable teen, knowing that they had "sinned", according to the church doctrine, and then carrying that guilt with you for the rest of your life....  As a matter of fact, maybe you have done the same thing?

I find it very inconsistent for a kind, merciful, and loving God to assign one of his children to death for a mis-step.  Sin is an archery term which means "to miss the mark".  I agree with A Course in Miracles where is states that sins are mistakes to be corrected.  And also with scripture that states that "we have all fallen short".  Does that that we are ALL going to hell?

If the wages of sin is death, why did Jesus die on the cross?  I thought he paid the price for our sins?  I think it's time that we stop burdening people with unnecessary guild and remember who our Father is...kind, loving, MERCIFUL!