What does Luke 7:46 mean?

Jesus finishes His comparison of Simon the Pharisees' greeting of Jesus with that of the sinful woman. Simon invited Jesus to a banquet and provided the minimum required welcomes. He didn't provide Jesus with water to wash His feet, he didn't greet Him with a kiss, and he didn't provide oil for His head (Luke 7:36, 45–46). That's fine, as such honors were not mandatory. Yet, considering Simon knew this man has raised the dead, expelled demons, and healed all sorts of illnesses and injuries (Luke 7:14–17, 21), such courtesies would have been appropriate.

The woman, however, first wept so much she was able to clean Jesus' feet with her tears. After wiping His feet with her hair, she then kissed them and anointed them with a bottle of perfume. While she did so, Simon silently dismissed her as too sinful for his consideration and judged Jesus for letting her touch Him (Luke 7:37–39).

Jesus takes Simon through three steps. First, He will not be shamed for accepting the gracious attentions of a woman who did far more for Him than Simon (Luke 7:45–46). Second, He knows she's sinful, but He also knows she acted out of love, which Simon lacks (Luke 7:47). Finally, she loves much because she knows she is forgiven of much. More to the point: she is forgiven. Simon has no right to judge her character, let alone her actions, because she is reconciled to God (Luke 7:48). Repentance, not rule-keeping, reconcile us to God and, in turn, make us love Him (Deuteronomy 6:5).