Understanding the Sermon on the Mount

What is your understanding of the Sermon on the Mount? The dispensationalist (not that all dispensationalists believe this) view that says that it doesn’t apply to the church today? The view that Christ purposefully gave a virtually impossible standard so that people would be driven to seek out grace? A literal view that believes that Christians today must be trying to live out each of its commands to the best of their ability, or at least when the commands are applicable? A softer view that believes that the passage uses extreme examples in order to show the importance of heart commitment, but doesn’t really expect all of the commands to be lived out literally? A combination of these or a different view altogether?

I can’t say that I have a well-developed position. I’m interested to know what you believe and why.

Thanks you for your thoughts.