If "God" is suppose to be a transcendent being and thus beyond human comprehension...?

Exactly. No one truly can understand what God is. It's a mystery. Every time I hear, "he's a man in the heavens watching you" I laugh. The Bible's interpretation is merely a personification. I absolutely hate when people act as though they know all about God and go so far as to say that he'll send you to the fiery pits of hell just because you don't believe in him.