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would Jesus approve of the two churches side by side or are we blind to what is really happening? Which one is right because clearly they are different.

It may sound simplistic but I think there are just things we cannot explain. Basically I think that the kind of unity you seek within Christendom is impossible yet I think God is still advancing Christianity at an astounding rate. Christianity has been and always will be "on the move". Nothing has ever halted its progress and of course there is no reason to believe anything ever will. Denominations are just a way to find different homes for different types of people.