|This often-quoted passage was stolen from the Torah or Talmud. This is strange because it's clear that Muhammad hated the Arabian Jews and even killed 700 of them in one sitting.|
All non-Muslims must realise that because Muhammad (as well as the rest) weren’t logicians or philosophers, it's not a surprise that there are numerous contradictions in the Koran.
However, some of these passages aren't straight contradictions of each other. Here "context" really does matter.
The early verses were produced when Muhammad was trying to hoodwink the Jews and Arab tribes into either supporting or not killing him. He had to do this because he and his followers were a tiny minority and had no choice but to preach peace, Interfaith and accommodation. (He might have even talked about Community Cohesion and Embracing Diversity - who knows.)
Later, when Muhammad had the power and numbers, it was then when he uttered all the war-like and hateful passages - of which there are very many in the Koran. (This is a warning to us about the Muslims amongst us today who speak with forked-tongue!)
In fact Muslims agree with me on the early and late parts of the Koran and their obvious/blatant differences and contradictions. Hence the notion of "abrogation". The early peaceful passages are abrogated by the later war-like ones. Muslims themselves tell us that the reason for the peaceful ones was simply a result of Mahmud's lack of power; not his pacifism or his Embracing of Diversity (or his commitment to “interfaith dialogue”)
Also, the Koran is not chronological. Thus you have one passage which is peaceful (see image above) which is almost immediately followed by its direct contradiction - a "hate crime"-of-a-passage of vituperation and Islamic exterminism/extremism.