Knowledge is definitely a factor which will develop your character in holiness. For me, God thankfully took away my desires for sin very powerfully, so it was really a renewal inside of me that helped me fight for most of my walk. Although, I experienced the deep trenches of wretchedness that helped cause me to hate that way of life. Also, the means of Grace are a primary way to wage war. But yes, knowing who we are in Christ will help our daily living. We see in the letters of Paul how we are to put off evil, and put on holiness because of our right standing with God. As well, when God gave the Israelites the Ten Commandments, He first reminded them of how He saved them, therefore they should respond to Him and His commands.
I would add as well that the truth sets us free. The more we engage with the truth and respond to it, the more we are conformed to it.