The famous verses about this being the only true and living church give a little more insight and help our membership understand why the Lord is well pleased with us if we include just a bit more in our quotation.
D&C 1:30 And also those to whom these commandments were given, might have power to lay the foundation of this church, and to bring it forth out of obscurity and out of darkness, the only true and living church upon the face of the whole earth, with which I, the Lord, am well pleased, speaking unto the church collectively and not individually—
31 For I the Lord cannot look upon sin with the least degree of allowance;
That last verse adds important meaning to why the Lord is well pleased: "For I the Lord cannot look upon sin with the least degree of allowance".
In fact, in D&C 63, the Lord expands on this, intentionally using the words "well pleased" he had formerly used when speaking of his church.
D&C 63:2 Yea, verily, I say, hear the word of him whose anger is kindled against the wicked and rebellious;
3 Who willeth to take even them whom he will take, and preserveth in life them whom he will preserve;
4 Who buildeth up at his own will and pleasure; and destroyeth when he pleases, and is able to cast the soul down to hell.
5 Behold, I, the Lord, utter my voice, and it shall be obeyed.
6 Wherefore, verily I say, let the wicked take heed, and let the rebellious fear and tremble; and let the unbelieving hold their lips, for the day of wrath shall come upon them as a whirlwind, and all flesh shall know that I am God.
7 And he that seeketh signs shall see signs, but not unto salvation.
8 Verily, I say unto you, there are those among you who seek signs, and there have been such even from the beginning;
9 But, behold, faith cometh not by signs, but signs follow those that believe.
10 Yea, signs come by faith, not by the will of men, nor as they please, but by the will of God.
11 Yea, signs come by faith, unto mighty works, for without faith no man pleaseth God; and with whom God is angry he is not well pleased; wherefore, unto such he showeth no signs, only in wrath unto their condemnation.
In D&C 63 the Lord actually threatens to cut his church off if they don't repent.
D&C 63:63 Wherefore, let the church repent of their sins, and I, the Lord, will own them; otherwise they shall be cut off.
The Church of Jesus Christ of Latter-day Saints must be defined by the righteousness of its members or it is not his church. We must not excuse our sins rationalizing that membership in the true church excuses its members, believing in our hearts that Christ will save us in our sins instead of saving them from them.