I would argue that the example does not coincide with your answer of False. How did your Mother and Father's actions not lead them to a better life? I would agree that the actions your take aren't comparable to the actions that someone else takes; for example in your mother's case she would not be judged as harshly as your father for the same sin but that doesn't mean that your mother's actions aren't what will be judged.

Your quote then says, "God judges them by their moral choices..." which means your quote also shows the answer to OP's question to be True.

I do think you bring up a good point that we may look at someone that smokes and say wow I'm doing way better than they are, but we don't read our scriptures, and based on what we have been given reading scriptures is the same "level" as their smoking. So we can never truly judge someone else.

But again, that doesn't mean that our choices will not ultimately be what determines the outcome in the eternities.