Should people be punished for their Honest beliefs?

What you point out has always bothered me about religion. Logically, to me, it didn't make sense that a loving god would be so manipulative. Believe in me or go to hell? Not much of a choice. It sounded like an ultimatum that an an evil CEO would present. It didn't mesh with what God is supposed to be. It just didn't. Something didn't sit right with me. Also, the whole dying on the cross for our sins thing. Sounds like something a crazy person would say.