Why, in Gods name, does He love us!?!

Does God love us based on who he is or on who we are?

If by who we are we mean what we do or don't do, no. This is not the grounds on which we are loved. Nothing we can or will ever do will cause God to love us.

Is there anything about us that God loves? Yes there is but it has nothing to do with our doing anything. It has everything to do with how God made us i.e. our being; who we are. 

We are in his image i.e. like God, and he loves this *about us (and therefore loves us; who we are). Why? Because we are able to enter into and participate in the beatific love of the Father, Son and Spirit and reflect that relational infinite love back to him as well as out to other of God's beloved Image bearers, along with all the rest of His highly valued and beloved creation. 

(Let us remember that after each act/day of creation God said it was good. And when he finally created mankind (male and female), the crown of his creation, he said it was all very good).

So going back to the original question on whether God loves us because of who he is or who we are, both are true. But the latter is based on and springs out of the former. So in this sense God loves us because of who God is first and foremost. 

If God were not who he was first (and had not made us the way we are as bearers of his image) there would be no love. No love within God first and therefore no love going out to all of creation in general and his image bearers in particular. Everything is based on and grounded in God being Father, Son and Spirit in blissful and loving relationship from all eternity past. And by virtue of being created as his image bearers, we are able to fully participate in this beatific union.

"And this is eternal life, that they know you the only true God, and Jesus Christ whom you have sent... I made known to them your name, and I will continue (by His Spirit) to make it known, that the love with which you have loved me may be in them, and I in them." - the very last words of Jesus at the last supper right before his arrest and crucifixion. Joh 17:3, 26

* in fact both we and Christ are in the image of the Father. Christ is the eternal image and only begotten Son. [ Col 1:15; 2Cor 4:4; Heb 1:3 ] We are the created image and adopted sons and daughters in Christ. This is why Christ's is called our brother.