Hailey, this is an interesting and helpful way to think of this passage. Daniel and his friends clearly were “in the world, but not of it.” They showed great conviction in the face of persecution and also great awareness of their responsibility to follow God’s commands and serve as role models in a pagan land, trusting in God’s promises to see them through. As you write, “Daniel was aware of his place in Babylon.” Christians today have lots to learn from his example in a fallen world.