For follow-up discussion and general commentary on the topic. Comments are sorted chronologically.
My opinion is that God does not see anything "wrong" about us. He only sees what may be missing, and in concert with Jesus and the Holy Spirit goes about helping to bring that into our life. He wishes for us to think with the mind of Christ as sons and daughters of the most high God.
Christ is the Groom and the church is his bride. How a Father sees his son's bride, is the same way God sees us.