I'm obviously VERY late to the party, but that doesn't mean it's so late I can't take a few shots and end up over the toilet yet.
The extremists are not literalists. They look like them; they smell like them...but they aren't. Generalizing the entire religion as one of violence, hate, and bigotry, while showing your true colors as a Christian apologist is the exemplification of intellectual dishonesty.
Let's take a look:
"[48:29] Muhammad is Allah's apostle. Those who follow him are ruthless to the unbelievers but merciful to one another."
The extremists blow each other up. They blow up Muslim women and children. They blow up moderate Muslims. More plainly, they blow up people who follow Muhammad as Allah's apostle, in clear violation of this verse. There are going to be inherent paradoxes and impossibilities when trying to literally follow ANY holy book. This is not one of them. This is an easy one to follow. But they don't. That makes them cherry pickers just as much as the moderate Muslims, all Christians, Jews, et al.
You either follow the book, or you follow your idea of what the book says; there is no middle ground, no gray area. It's black or white.
Yes, these extremists are horrible, delusional people. But they are no more literalists than moderate Muslims...they just base their beliefs around different aspects of their book. Do the moderates allow the existence and proliferation of the extremists? Of course! But there are, of course, other underlying issues to be dealt with...the problem isn't the religion itself, as not all who follow it (or even particularly many) are outwardly violent people.