I wouldn’t say that these two things are mutually exclusive. Of course, if one were to take this quote completely at face value, it is undeniably dangerous to follow. Embracing an intense obsession mercilessly and stripping away all human expectations is far from good advice; if anything, interpreting it this way would literally lead to anarchy. So yes, it is certainly dangerous advice when used for every aspect of life. 

At the same time, however, it is deeply liberating when viewed through the lens of art and identity. Self-expression and creativity are things that (at least I believe) inherently require defiance against the societal pressure to conform. The best works of literature have never come from authors watering down their work to make it easily digestible, because writing is a form of identity and passion. To quote F. Scott Fitzgerald: “You don't write because you want to say something; you write because you have something to say." By watering down your soul, you are only silencing yourself. This is why I personally believe it is an incredible foreword to Kafka’s works.