Need help understanding the sins hadith

What does this hadith mean? > Allah's apostle said," By Him in Whose Hand is my life, if you were not to commit sin, Allah would sweep you out of existence and He would replace (you by) those people who would commit sin and seek forgiveness from Allah, and He would have pardoned them." > — [Sahih Muslim](http://sunnah.com/muslim/50/13) We are also taught in Islam that doing sin is wrong but this hadith says that if you dont commit sin, you will be replaced by people who commit sins and ask forgiveness? What does this hadith mean?