EDIT: Do not refer to Divine Command Theory (DCT). I am a moral realist and DCT-esque explanations are of no use to me.

I'm talking about non-muslims who:

1. are fully aware of the truth (w.r.t. Islam and religion)
2. reject the signs or scripture
3. do not deliberately hurt other people (or are otherwise not ''evil'')

God says he doesn't need us. So why does he punish these people? If this truly is the case - as is outlined by the mainstream understanding - then it makes out god to be capricious or narcissistic, which is unfitting for a just and needless god.

God says it's our choice whether we believe or not - but if we have to believe in order to escape thenightmarish suffering that is eternal damnation, it's not exactly much of a choice.

3:85 to me is the clearest injunction on god demanding Islam from those who have seen truth. Understanding ''islam'' as ''submission'' instead of the religion here appears to be taking it out of the context which, prima facie, would be the name of the religion itself imo.

Granted, 2:62 appears to go directly against this - it seems that if one were to do a thematic/contextual understanding, this may make more sense when considering the people of the book of former times and/or those who have not seen the truth of islam.

I'm looking for detailed and analytical responses, not just assertions of opinions.