My understanding of God and his purposes is a lot broader and deeper than you describe, therefore I find Him palatable. I can see your point of view in not wanting to believe in the god you describe. If that were my understanding and level of perception of him I could also likely choose the atheistic route.
However there is more than you describe and bigots etc. are found amongst atheists and non-believers alike. They are likely representative of the ratio in the rest of humanity... simply more noticeable because they profess a higher standard.
I must confess I've never actually read a bible (Other than what I was raised with in CoE schools) and generally find it hard to engage with individuals since there's always this kind of thick red line between 'us and them', so I'm obviously somewhat biased and ignorant of the deeper levels that you claim to be aware of. Something for me to think about =)