I think we nearly always define this too narrowly. I agree completely with the idea of tension between the spiritual and the cultural - and the need to consider it in all things, but I would err on the side that says, "If there is no demonstrable negative, it is a positive."
I understand that the verses I did not quote in Moroni 7 add an elemental focus on Christ which can be problematic for some, but the basic point appears to me to be that we need to fight the natural tendency to label good as bad - thereby missing an expansiveness that can add richness to life and unite rather than divide. The admonitions about calling evil good are important, but, in this chapter, they appear to be a necessary subordinate to the overall objective of avoiding getting narrow-minded and exclusionary.
1 John 4:18 (excerpt) -- "There is no fear in love; but perfect love casteth out fear."
Again, I think we err far too often on the side of rejection (usually out of fear of the result) and end up calling evil that which is good.
For example: I served my mission in
"'Ancestor worship' is a terrible translation of what our shrines mean to us. We do not 'worship' our ancestors in the way that foreigners usually assume. We honor them for their influence on our lives - for their dedication and love and service - for the connectedness we feel long after death. Our shrines are like our personal temples, places that show our desire to turn our hearts to them and recognize that their hearts are turned to us. How much more Mormon can you get than that?"