Douglas Rushkoff has an outstanding blog post outlining his views on why we need to restore the bible's position as a great story and wean people off the absurd and dangerous notion that it is the literal truth:
When religions are practiced, as they are by a majority of those in developed nations, today, as a kind of nostalgic little ritual - a community event or an excuse to get together and not work - it doesn't really screw anything up too badly. But when they radically alter our ability to contend with reality, cope with difference, or implement the most basic ethical provisions, they must be stopped.
Added weight to my agreement with Douglas comes from my current reading - the so far wonderful Godless Morality, written by the Bishop Of Edinburgh which argues that god should be kept separate from morality:
Another difficulty with religion and ethics is the way religions tend to associate God with particular stages or phases in social development ... the most eloquent and obvious one has been the varying status of women in the history of Christianity. It is one thing to recognise that gender relations affect historical and social realities; it is another to claim that they have been permanently established by God in a specific pattern. If we claim the latter, the legitimate critique made by feminists against male dominance and oppression has to be made against God. We either admit that God is, to some extent at least a human construct, that is subject to criticism and evolution, or we weld religion to unsustainable prejudices that guarantee its rejection for the best, not the worst of reasons, so that to abandon it becomes a virtuous act of revolt against an oppressive force that imprisons rather than liberates humanity.