Not acting horrible because you're afraid of what God will do to you if you do act horrible isn't morality. It's covering your ass.
True morality has nothing to do with fear of consequences.
What is wrong with acting on an incentive? If a God exists, wouldn't you want him to punish evil people and reward good ones? And if fear of divine wrath produces repentance, why is that a bad thing?
If the only reason you don't murder people is your fear of being sent to jail/death row, that's not a good thing.
On the other hand, if fear of divine wrath does make people do good things/not do bad things, I'd say that's a pretty good thing.
Oh, I certainly agree that someone would have to be a sociopath if the only reason they don't murder someone is to avoid divine wrath. Of course, the fact that punishment deters even sociopaths is a very good thing, even if they aren't moral.
My point was that most moral choices we have are less stark but are still very relevant: should I donate a portion of what I earn to charity to help those less fortunate? Should I cheat on that test or not? It's very easy to have a utilitarian argument that our choices in these areas impact the aggregate very minimally, but the sum of those choices over many people makes a big difference in the type of society we live in. I contend that a morality influenced by a fear of God to an extent will cause people to make better decisions, and I don't think it's a bad thing that people are influenced by their self-interest in this.