Judgment, Self-Examination, and Holy Discernment
“Judge not” is immediately followed by teaching that requires discernment. Jesus condemns hypocritical, self-blind judgment: first remove the beam from one’s own eye, then see clearly to help another. The final saying about holy things and pearls shows that moral discernment has not disappeared.
Where this fits in the story: wisdom literature repeatedly warns against both arrogance and folly, while Torah requires just judgment rather than partial or corrupt judgment.
Where Scripture takes it next: Matthew 18 gives a concrete process for confronting a sinning brother, confirming that 7:1 is not a ban on all moral evaluation.