Mark Vestal Supporter Proud of nothing of myself. Freed by Christ who did it all!

Peter is addressing Jews specifically here, who were being prepared to "endure unto the end" (Matt 24:13) of their final seven years of tribulation. As mentioned in your cited verses, it will be "at the revelation of Jesus Christ" (the end of the trib) that Israel's sins will then be "blotted out":

Acts 3:19
"Repent ye therefore, and be converted, that your sins may be blotted out, when the times of refreshing shall come from the presence of the Lord."

Compare this to Paul's gospel to all believers today (Eph 3:2), where we have forgiveness of sins now, and without having to wait on the return of Christ:

Col 1:14
"In whom we have redemption through his blood, even the forgiveness of sins:"

Eph 4:32
"And be ye kind one to another, tenderhearted, forgiving one another, even as God for Christ's sake hath forgiven you."

2 Cor 5:19
"To wit, that God was in Christ, reconciling the world unto himself, not imputing their trespasses unto them; and hath committed unto us the word of reconciliation."

It was due to Israel's fall that salvation came freely and immediately (Eph 1:12-13, Eph 4:30) upon having faith in Christ to gentiles (all today):

Rom 11:11
"I say then, Have they stumbled that they should fall? God forbid: but rather through their fall salvation is come unto the Gentiles, for to provoke them to jealousy."

With that said, the "fear of God" could be a reference to Peter's audience regarding their own salvation, but it could also be an admonishment, as seen by Paul below, to fear the wrath of God for unbelievers:

Phil 2:12-13
"Wherefore, my beloved, as ye have always obeyed, not as in my presence only, but now much more in my absence, work out your own salvation with fear and trembling.
13 For it is God which worketh in you both to will and to do of his good pleasure."

God is working within the believer for His own "good pleasure". We "work out our own salvation" (salvation that is within the believer)...out to others, with fear and trembling, knowing the result of their unbelief. The cost of salvation was Christ crucified for us. How it reshapes our view of holiness is that it was by our faith in His holiness that we are then imputed with the "righteousness of God" Himself:

2 Cor 5:20-21
"Now then we are ambassadors for Christ, as though God did beseech you by us: we pray you in Christ's stead, be ye reconciled to God.
21 For he hath made him to be sin for us, who knew no sin; that we might be made the righteousness of God in him."

We work at living a more holy life because of God's gift of salvation (Eph 2:8-9) that we have through faith alone in Christ. Paul essentially states that it is the least we can do for God because of the payment that Christ alone could and did make for us:

Rom 12:1-2
"I beseech you therefore, brethren, by the mercies of God, that ye present your bodies a living sacrifice, holy, acceptable unto God, which is your reasonable service.
2 And be not conformed to this world: but be ye transformed by the renewing of your mind, that ye may prove what is that good, and acceptable, and perfect, will of God."

It is the unrighteous that Christ died for, therefore we should give thanks to God in return by living a more righteous life for Him for His free gift of imputed righteousness and justification for us unto eternal life..

Rom 5:8-10
"But God commendeth his love toward us, in that, while we were yet sinners, Christ died for us.
9 Much more then, being now justified by his blood, we shall be saved from wrath through him.
10 For if, when we were enemies, we were reconciled to God by the death of his Son, much more, being reconciled, we shall be saved by his life."

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