You didn't mind asking a loooong question, so I'll give you a long answer, since you obviously have the time.
Is it obsolete? No, clearly not. We have plenty of deluded people still running around performing Honor Killings, bombings, gay bashings, and genocide for religion.
Is it becoming obsolete? Yes.The number of atheists has doubled in the past ten
years:
http://www.intheagora.com/archives/2006/03/atheism_is_the_fastest_growing_religious_identity_in_america/
http://en.wikipedia.org/wiki/Demographics_of_atheism
I'd say the fact that all the new atheistic books are all international bestsellers is an indication as well that people are moving away from religion. (Dawkins, Hitchens, Sam Harris, Daniel Dennett, Hirisi Ali)
Should it be obsolete? Would we be better off without religion? Yes.
the majority of wars, genocidal behavior, and slavery and oppression will end. All of these things have historically been based on religious belief in most cases (Bosnia, Rwanda, Somalia, Uganda, The religious wars between the Islamic sects in the middle east, the crusades, the inquisition, and the wars between protestants and catholics like the 30 years war and the troubles in Northern Ireland)
And I hope we move away from religion and myth while we still have time. Religious war will probably be the end of us as a civilization if we don't stop this nonsense of believing in things without evidence and presenting it as fact to our children While one parent is teaching their child that their religion is the "one true religion" so are Islamic parents, Christian parents and Jewish parents. The major Abrahamic religions (Islam, Christianity) also teach that you will be rewarded in heaven/paradise for killing in the name of god or dying a martyr in the name of your god.
Eventually, someone is going to have a nuke (or someone who already has one will use it) for religious reasons. I don't see a way of bringing peace in our society without the end of religious doctrine so continuing to indoctrinate generation after generation seems to be taking us closer and closer to the brink of death.
If you think Islamics are the only ones who would welcome nuclear war for religion, guess again.
"A nuclear war would have no more effect than moving millions of people into paradise a little sooner"--The Archbishop of Canterbury- 1964.
Religious indoctrination will probably be the end of us. We need to move away from myth while we still can.
There would also be advancements in areas where we are currently being held back by religion, such as:
Opposition to Stem Cell Research. (those 3 days old microscopic cells have SOULS, you know) Stem cell research has the potential for curing parkinsons, ASL, diabetes, leukemia and several other horrible conditions,
Trying to teach "creationist" mythology in science classes in a nation that is already falling behind in science. Texas is the latest example...they just had "creationism" added as an "alternative theory" in some textbooks...Zeus help us...they are already 41st place in the States in educational ranking. How much worse do they want to get?
Religion and bible-thumping that allows civil rights violations, such as discrimination of gays and allows mistreatment of children by adults who believe that it's okay to hit small children with rods and paddles because "the bible says so".