Yes, it is definitely offensive and cruel when taken to that extreme.
It can be seen as the opposite of the age old theodicÚ problem within religions; if God is good then how come there is so much evil in this world? In other words, where all the responsibility for states and affairs in the world used to lay on a deity, it is now in the hands of the individual.
I guess the fierce believers in the LOA don't practice acceptance at all, they probably view it as a weakness. So the LOA is really not that spiritual in the sense that it eventually leads to the extreme selfcentered new-ageism. Which is just overblown egotism dressed up in pretty words.
Bix has been doing a lot of LOA bashing recently and I can defintely follow his trail. But at the same time, if you approach it with caution and don't let it go to the extreme, like some of the people on the Larry King show - the woman was particularly nasty with her remarks on bipolar - and you get a grip on the fact that it is some rather simple and plain truths, it holds value.
So I am both intrigued and skeptic about the LOA.