is merit just ok (not great)?

In the sutra it says: > “And what is the cause by which effluents come into play? Ignorance is > the cause by which effluents come into play. … “And what is the result > of effluents? One who is immersed in ignorance produces a > corresponding state of existence, on the side of merit or demerit. > This is called the result of effluents. … “And what is the cessation > of effluents? From the cessation of ignorance is the cessation of > effluents; and just this noble eightfold path—right view, right > resolve, right speech, right action, right livelihood, right effort, > right mindfulness, right concentration—is the way leading to the > cessation of effluents. Is buddha only being nice (compassionate) to call the result of fermentation - taints, corruptions, intoxicating bias - both merit and demerit? I recall buddha praises heightened virtue, so this seems like a contradiction to me. Only virtuous quality could lead to merit, so is buddha calling for an end to all mentality, i.e. all mentality is essentially not good.