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Some random thoughts come to mind:
First, cases such as this should warn us against trying to use the Bible to "prove" one doctrine or another. The Bible is a complex artifact of tens of centuries of faith, Hebrew-Jewish first and then Christian later. A good deal of it was originally intended to speak to specific situations, long since passed. The Bible is far more legitimately useful when we use it to "get us into the ball park" of Christian faith and to learn how our ancestors in the faith thought through things and understood them. As a general rule, the Bible leaves us a great deal of latitude to arrive at our own understanding on matters of faith and doctrine.
Second, Protestants have for so long held to one viewpoint that they virtually don't see (comprehend) passages that say the opposite to their understanding of the matter of salvation. They see what they've been trained by the doctrines of their faith tradition to see and don't see what falls outside of the purview of tradition. They will attack, in this case, any hint that our works have a role to play in our salvation as being "unbiblical," even though numerous biblical passages can be cited making that very point.
Third, regarding the relationship of grace to works, we would do well to work out a third understanding of salvation, one that sees faith and works as elements in a dynamic process of salvation that impacts both our sense of where we put our trust (our faith) and how we try to live our lives (our works). Rather than holding rigidly and unthinkingly to the old-timed Protestant point of view, we will certainly derive greater benefit by wrestling with the multifaceted nature of salvation. And we will be no less true to our Christian faith.