Like I stated previously, the earlier writings are overwritten by the later writing. The Qur'an is not in chronological order. The instructions give in Al-i-Imran (chapter 3) occurred long before Al-Maeda (chapter 5). Al-Maeda is one of the last books and in regarded as being on of the last sets of instructions revealed by Allah to Mohammed. I know that it is confusing, and I am not attacking you with this, just trying to give you the insight on how to discuss it.
I agree that some religious instructions attempt to "put fences around believers".
The statement that you bring up, "Allah is the best of deceivers" is actually a good one. Allah is the God of Abraham, which the Christians and Jews believe in as well, yet they do not believe that he can lie or deceive. In this case, Islam takes a very different view of God than the Christians or Jews do - and that is an excellent theological discussion to have.
As for you David Pryce-Jones quote, I have never lived in an Arab country, and do not know the customs practiced there. I know that I do not see that in the ones that I have met here, but then again, they have lived here for quite a while and have adapted to American customs.






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