He wasn't a devout Muslim. A devout Muslim wouldn't kill innovent people. I've run into quite a few "Christian's" who frequent bars and strip joints as well. I wouldn't tend to denegrate the entire religion because of that.
Islam does not appear to be mololithic. There appear to be regions where drinking alcohol is accepted.
My problem with the religion (and people) as a whole is they have not yet accepted responsibility for their economic backwardness. Many, including Saddam, were raised by card-carrying Nazis, and have perpetuated the anti-Jewish ideology of Hitler. And those who profess to be peaceful nevertheless affiliate themselves with socialists and totalitarians of all stripes. They simply have no concept of individual rights and liberties.