All Religions Other than Islam Are heresy

So the religion of peace and tolerance strikes again:

'All Religions Other Than Islam Are Heresy': Saudi Religious Council
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Posted GMT 3-31-2006 15:58:1 - AINA

The Saudi fatwa reads as follows: "The Permanent Council for Scholarly Research and Religious Legal Judgment has studied the queries some individuals brought before the Chief Mufti… concerning the topic of the construction of houses of worship for unbelievers in the Arabian Peninsula, such as the construction of churches for Christians and houses of worship for Jews and for other unbelievers and [the question of] the owners of companies or organizations allotting a fixed place for their unbelieving workers to perform the rites of unbelief.

"After considering the queries the Council answered as follows:

"All religions other than Islam are heresy and error. Any place designated for worship other than [that of] Islam is a place of heresy and error, for it is forbidden to worship Allah in any way other than the way that Allah has prescribed in Islam. The law of Islam (shari'a) is the final and definitive religious law. It applies to all men and jinns and abrogates all that came before it. This is a matter about which there is consensus.

Excerpt from:
http://www.aina.org/news/2006033195801.htm

Why many do not accept Islam:

-It is a late religion.  7 AD.  That's not even ancient.
-It is based on Christianity and Judaism, yet says they were both wrong.  Why would God allow two major religions to exist based on being wrong?  If they believe in the same God, and have been before Islam came into existence, why would are they suddenly wrong when Islam comes into existence?   
-It excludes anyone who does not follow the five pillars.  Don't pray five times a day?  You're going to hell.
-It's just another monotheistic religion meant to destroy warring pagan tribes of its time.  Same with most monotheistic religions.
-It offers little philosophical insight aside from "God is almighty"
-Why would God allow a religion to kill innocents and fight amongst itself so often?  Why would God allow people to misenterpret so much that they kill each other over it?
-If God cannot be wrong, how can he allow Muslims to interpret his word completely wrong, or Christians and Jews to interpret it completely wrong?  If everything in the Bible was wrong, then isn't God fallible?