Jesus shows us the perfect model, he hung out with prostitutes and tax collectors, some of the lowest people in his day. People loved to be around him, but at the same time he boldly spoke the word, spoke the truth of the Bible. He spoke it so boldly that eventually he was put to death by the legalistic, religious people of his time who did not want to hear what he said. But everything he did and said, everything Paul said and all the other apostles was meant for a huge purpose, to bring the unsaved to a saving faith in Jesus Christ.
This should be our goal, and to do this, we have to be in the world. But if we are in the world, and become the world, losing the truth of Gods word, instead of boldly speaking it, then no one will be reached. If we truly love someone, then we will do whatever we can do bring them to Christ, if we hold our tongue, then we do our part to send them to hell. So, if you truly care for someone, you will boldly speak Gods words. If we truly care, we will be in the world, among the non believers, showing Gods love, but at the same time, speaking with clarity and with certainty the gospel, no matter what trials and persecution this will bring us. That my friends, is what being in the world, but not of the world is all about.