The Only True Church?

Recently I have been researching and writing on the question (or problem) of pluralism. Members of the LDS faith, myself included, often hear and use the phrase "the only true church" to refer to the Church of Jesus Christ of Latter-day Saints. Normally I construe this to mean that (1) our church possesses more truth than any other faith, (2) it embraces all truths from any faith and disregards the origin of any idea in dictating its verity, therefore allowing for a huge doctrine. and (3) the living priesthood, or authority to act in God's name as a church, resides only with our current prophet and leaders.

This is all good and fine, and well, I agree with it (hence why I am a member). But the vexing question remains: how can we explain so many good hearted people who diligently seek after God, but reject Mormon beliefs? I believe that there are people in the world who diligently seek after truth and may still reject the Mormon message continually. I further believe that their reasons for rejecting it would not be based on inadequate understanding, or a lack of worthiness. For some reason, honest and loving people reject my faith but believe whole heartedly in their own. Are we willing or obligated to deny the legitimacy of their beliefs? Is the existence of so many different religions and creeds a regrettable fact? Does our affirmation of being the only true church bind us to such a position?

Obviously this is a highly nuanced question, and one which I am working on, but I want anyone to share their opinions on the subject. I will post more thoughts later.....I want Chipotle