I would say that the gospel of the church is neither one or the other - it's just the gospel; and we have the gospel so that we may have joy in this life. Yes, all of us have temptations that we need to over come; but overall, the gospel will bring us joy.
Where people get confused with this statement, is when they factor in the culture of this church. It is often difficult to decipher one from the other, because members will weave in their own interpretations of the commandments into the culture. And if you don't fit the mold, you're out - which can leave people feeling less than, or not worthy.
Happiness within the gospel is a closed relationship between you and the Lord. When you allow the members to dictate that, you're setting yourself up to fail.
Quick example: my wife was invited to a mommy club at our pool. We have a handicapped daughter so my wife wasn't really able to sit and socialize on the deck as our daughter wanted to be in the pool - not a huge deal. Also, all the other moms were wearing shorts with their one-piece swimsuits (a few had shirts as well). My wife thought it was weird, but just thought it was no big deal.
The following week, no invite came. My wife assumed that it was probably just a one off thing so, having promised the kids she'd take them down, she gathered up the pool gear and went. When she arrived, she saw a horde of kids from the ward: they were doing mommy club, and they didn't invite her.
This isn't new to us. We never have fit into the culture of the church. But in this case, my wife was very hurt. She kept asking me, "Is it because I wasn't wearing shorts? Maybe they didn't want their kids seeing a woman in a one-piece? or, is it because of our daughter? Are they uncomfortable around her?"
In the end, I asked her, "Would you have invited any of those women to the pool?" Her answer was, "No. I really don't want to be around any of those women, because all those women are in a hell which they themselves have built up around them; and who wants to hang out with that? Always competing with each other; always worried that you might have offended someone because you allowed your kid to do something on Sunday; always measuring your righteousness against the group's righteousness. No, thank you."