The Rambam (More NIvuchim 3, 49) disagrees with this Midrash (explained by the RaSag) he cannot accept that what Hashem made isn't perfect, it is only that we cannot handle the perfection.
He introduces his (first of two) reason for Bris, it is to diminish and curb the Ta'ava (lust).
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לנדבות והקדשות להמשיך את עבודת הקודש
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