Allah bestows honor upon believers which brings esteem, confidence, dignity and self-respect in their character. One concious of that honor will resist falling from that position. Allah swt says in the Quran, "Inna Izzata lillahi walir rasuli, walil mo'mineen" - Indeed honor is for Allah, and for prophet and for the believers.
Ageed wid Z, taking honor in servitude to Allah is pride and persistence in transgression is arrogance.
Allah swt wants honor for his slaves and thats what He stated when ordained women to cover theirselves so they may command respect and dignity. Unfortunately, some feel proud in transgressing divine ordains with sheer arrogance.
People feel ashamed of offering prayers in public and feel compelled to step over limits just to fit in the society - need a boost in self-esteem and confidence.
When Omar RA arrived in Palestine to recieve they keys to Jesrusalam, Abu-Obaidah ibn Jarrah RA (one of ten who were given glad tiddings of paradise) pointing out to Omar's clothes, having twelve patches, asked him to put on something better because people there were particular about dressing up. Omar RA responded with words that we were honored by Islam and Quran when we were nothing, since when we started to feel honor in clothes and outlook.
I believe, Iqbal's poetry refers to that noble status of respect and honor. Prophet SAW said, Abu-Bakr will be given the choice on the day of the judgement to enter the paradise from any door he wishes - God leaves up to him of his wishes of the ultimate.