If your original questions still stand, Coelacanth, I would like to answer them for you.
God demands faith, or trust, because it's the only standard set by God that mankind is able to meet. God laid down the laws of Moses to set His standard for goodness, thus revealing truth to a lost and confused world. Knowing that a fallen humanity has failed to obey the law, God started the second phase, which was to meet those standards on our behalf and then dying on the cross. So faith is not just a belief in the phenomina of Jesus' death and ressurection, but the signing of a legal contract that states, "I "name" hereby accept your sacrifice for me."
Upon the signing of this contract, or the act of faith, believers are sealed in the Holy Spirit, the guarantee of their salvation until the redemption of the purchased possession. But that's not all. The Holy Spirit also give believers a new life. He changes people from the inside out, softens their hearts, and sets their minds on the things of God, so Christianity not only is about redeeming mankind, important as that is, but it's also about living a fuller life.
As far as sending people to Hell for lack of faith is concerned, this is justified because some men reject God entirely, retaining their state of corruption. Now it is a mistake to assume that Hell is a torture chamber. It is only a miserable place because, before being cast into the pit, the damned realize that God offered them a free ride to Heaven and they rejected it, thus separating them from Christ who encompasses all love and meaning. So Hell doesn't make itself miserable. People make it a miserable place when they realize that they have built a permanent wall between themselves and the God of love.
I hope that these answers were sufficient for you and enriched your knowledge of God. If not, I would do what I can to be more clarifying or consistent.