By this point in the sermon, no one who has been taking Jesus' words seriously will feel much like judging anyone else anyway. Still, we humans tend to prefer applying ethics to other people rather than ourselves. (For example, husbands tend to prefer quoting Paul's instructions on marriage to their wives rather than his admonitions to them, and vice-versa. Likewise, I have sometimes listened to a sermon thinking, I wish so-and-so had shown up for church today.) So just in case we have been too obtuse to grasp that Jesus addresses us rather than others in 5:3-6:34, Jesus renders the point explicit in 7:1-5. We are objects of God's evaluation, and God evaluates most graciously the meek, who recognize God alone as judge.
Even if we knew people's hearts, we could not evaluate degrees of personal guilt as if we understood all the genetic and social influences that combine with personal sinful choices in making some people more vulnerable to particular temptations (such as alcohol or spouse abuse) than others. Most important, Jesus warns us that even if we knew people's hearts, we would be in no position to judge unless we had lived sinless lives, never needing God's forgiveness (vv. 3-5; compare 6:12, 14-15).
Many people have ripped this passage out of context, however. Jesus warns us not to assume God's prerogative to condemn the guilty; he is not warning us not to discern truth from error (see 7:15-23). Further, Jesus does not oppose offering correction, but only offering correction in the wrong spirit (v. 5; compare 18:15-17; Gal 6:1-5).
Having right beliefs about judging is not enough. Although Jesus regards scribal and Pharisaic righteousness as inadequate (Mt 5:20), it is not because scribes and Pharisees professed the wrong doctrine on this issue. Most of the sages would have probably agreed with his basic perspective here (compare, for example, Sirach 28:1-3; m. 'Abot 2:5), and even the particular image of measuring back what one measures out (Mt 7:2-as in "what goes around comes around") was proverbial wisdom. Jesus' contemporaries often affirmed his principle and even used the same illustration, but Jesus demands more than agreement from disciples: he demands obedience (vv. 24-27).