"I beg you, as those whom I love, to live in this world as strangers and “temporary residents”, to keep clear of the desires of your lower natures, for they are always at war with your souls. Your conduct among the surrounding peoples in your different countries should always be good and right, so that although they may in the usual way slander you as evil-doers yet when disasters come, they may glorify God when they see how well you conduct yourselves." 1 Peter 2:11,12
To get to the crux of these two verses, we have to go back to one word in the first sentence - in the Greek, ὡς: "as" - "Beloved, I exhort you as strangers and exiles..."
I think we think that, as followers of Jesus, we have to actively withdraw from the world, ie. make ourselves as if strangers and exiles. But Peter is saying, no, as followers of Jesus, you are already strangers and exiles: you already don't quite belong.
But where do we not belong?
Well, obviously, amidst the broken ways of the world, amidst its "slanders" and absurdities. But where else? Amidst "the desires of your lower natures," ie. in the way of the flesh within: we are exiled from even part of ourselves.
That is at the heart of what Jesus meant when He said to His friends: "It is the Spirit which gives life. The flesh will not help you." (John 6:63) And that's why we must give our greatest attentions to the ways of the Holy Spirit; otherwise we'll always be sitting on the sidelines of every battle, both in and around us.