The problem with insisting that the bible be taken literally is that you then force god into the mold of the mean-spirited, psychotic little troll portrayed in the pages thereof. At least if you view the bible as a human attempt to describe the unknowable, you can claim that god was filtered through the sensibilities of the time.
I do take the whole Bible literally and when people say a problem with Christians is they don't take the whole book literally drives me crazy. There are many different beliefs among atheists but one atheist should be taken to show the beliefs of the whole.
And to the quote above have you read the Bible in its entirety? If you do you can see that God is not how you depict him.
"16 For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life. 17 For God did not send his Son into the world to condemn the world, but to save the world through him. " John 3:16-17
"20 I have been crucified with Christ and I no longer live, but Christ lives in me. The life I now live in the body, I live by faith in the Son of God, who loved me and gave himself for me."
"6 You see, at just the right time, when we were still powerless, Christ died for the ungodly. 7 Very rarely will anyone die for a righteous person, though for a good person someone might possibly dare to die. 8 But God demonstrates his own love for us in this: While we were still sinners, Christ died for us."
And there are many more examples. How is a God who gives His Son so that those who have sin against him can gain eternal life be what you think he is?