i think it is also important to understand why we canonize saints. in the early days of the church (as well as now), there were many who actually did miraculous things (or rather, God through them). in the early days, however, the re-telling of their deeds was sometimes exaggerated. as a result, it was unclear exactly who did exactly what, and some reported greater things than actually done in a misguided effort to honor them even more.
as we do now, they then looked to these miraculous people as rolemodels. in an effort to ensure these rolemodels were non-fiction (so to speak), the church set about certain processes to verify/validify the stories of the saints. because it is so rigerous and stringent, we can believe the church when she pronounces a saint “canonized”. truth is always paramount, and our loving mother church would not have us believe “tall tales”. some earthly saints are simpy not as holy as we would like to believe, and some more holy than we would otherwise think. to ensure these people were holy ones (i.e., saints proper), we are obliged to wait until after their death - this prevents a death-bed apostacy of a canonized saint. we are also obliged to perform an investigation to see if there were “closet” sins that people just didn’t speak of until after the proposed saint’s death. again, because of the rigerous processes and bureaucracy of the church, we can trust in her words when a saint is finally canonized. (and yes, i just professed thankfulness for the bureaucracy of the church!)
so yes, we are all saints (holy ones) by virtue of the grace of God, through our faith working in love. when st. paul calls us saints, he is speaking as he would have us be, not as we truly are. by that measure, we can certainly agree with our protestant brothers that we are saints. that we will remain saints until our dying breath is known only to God. finally, our sainthood is merely a shadow of what it will be when we look on God’s face in heaven - when we are perfected and restored to Him. as that is also questionable until we die, we should use the term sparingly in reference to ourselves.
if i was unclear or if you would have me ramble on even more, you have but to ask,