After reflecting on the dualistic nature of life verses I had another notion come to mind: character flaws might be (or stem from) spiritual gifts used in the flesh. Some of the practical examples that came to mind were these:

Gift Character flaw
Mercy/Compassionate Permissive, pushover
Prophetic Verbally oppressive
Apostolic Overbearing
Charismatic Charming
Evangelistic Smooth-talking

I have not dwelt on this at length, but, I really sense there is something to this. How it might help is, when I see someone clearly walking in the flesh, identify what character flaw is being displayed and track back to the spiritual gift they have. Then, once the gift is identified, pray and speak to the gift (in the spiritual) and not the flaw (in the natural). Many times when you focus on the natural, you will get drawn into the natural and respond soulishly as well. Instead, remember to draw to the spiritual level and lift the person with you instead of being pulled (or letting yourself be drawn) down to the level of the flesh and fall to them.