There seems to be two extremes:
1. Everything is halal
2. Everything is haram
Fortunately Allah has made it clear:
وَكَذَٰلِكَ جَعَلْنَاكُمْ أُمَّةً وَسَطًا لِّتَكُونُوا شُهَدَاءَ عَلَى النَّاسِ وَيَكُونَ الرَّسُولُ عَلَيْكُمْ شَهِيدًا ۗ
Thus We have appointed you a middle nation Ummatan wasatan , that ye may be witnesses against mankind, and that the messenger may be a witness against you (Q 2:143 Pickthall)
Wasatan one that represents a middle path between exaggeration and negligence, because both are blameworthy in the matter of religion.
Wasatan means, just and best. Allah has made this ummah just in all matters of religion, and in the middle with regard to the Prophets, between those who exaggerated about them like the Christians, and those who shunned them like the Jews, because they believed in all of them in an appropriate manner.
Wasatan means we are in the middle with regard to divine laws; they did not go to extremes like the Jews or neglect them like the Christians.