Wouldn't another potential implication of focusing on God's transcendence be atheism? If God appears hidden or so far removed from us as to be nowhere as far as anyone can tell, we might eventually infer that there's no God at all.

I would have liked to see more reflection here on why saying that God is both immanent and transcendent isn't just lazily self-contradictory. I can see how God's presence might destroy us, so he'd transcend our comprehension to preserve our sanity (and our vanity). But in what sense, then, is God immanent?

The Christian will say God is immanent in Jesus, but that's quite dubious. For one thing, Jesus is no longer present since if he lived at all he died two millennia ago. Thus, God-as-Jesus was immanent then but he's not now. If it's the risen Jesus that's still immanent in his ascended form, what exactly does that mean? Immanent where and how, and in what ongoing form?