I think that the goats in Matthew 25 are believers who had a chance to do good works but didn’t. The sheep are believers who had a chance to do good works and did them. I say this because both groups refer to Jesus as Lord and Jesus accuses the goats because they didn’t do something when they had the chance. The sheep have proved that they have true faith by doing the works while the goats show they haven’t got true faith.
I don’t think it is meant to be a full picture of the final judgement. One reason for this is quite simple. Where are the infants who have not had the opportunity to do either bad or good works?
I don’t really think that any mainline Protestant church denies that we should have good works. The question is whether they merit anything. In Luke 17:9-10 Jesus says:
“He does not thank the slave because he did the things which were commanded, does he? So you too, when you do all the things which are commanded you, say, 'We are unworthy slaves; we have done only that which we ought to have done.”"
I think it can be said for those who have the chance, that good works do not result in justification but no one is justified without them.
Protestants are afraid of taking any of God’s glory by saying that their works merit anything.
I think that if you are doing good works because you want salvation, you are doing them for the wrong reason. We should be doing good works because we love God and love our neighbour. If we do them to try to merit or gain salavation you are doing them for the wrong reason. You are essentially saying that at least one reason I am doing these things is because I want salvation. The words I want should have no place in what we do since they involve a motive of self-interest rather than love for others.
Additionally we should not do them to avoid damnation because again we would be doing them out of self-interest and not love. In my opinion it is an even worse reason as it says I am doing this because I am afraid of God. In 1 John 4 we are told that perfect love does not involve fear, because fear involves punishment. So if we fear we do from fear, it is not fully from the love that should motivate them.
It may be difficult not to do things without considering self-interest as at least a partial motive but I think that is what we must try to do.
I hope this is not off topic. Is not intended to be.