Well, I certainly hope I'm not turning into a fundamentalist, I look awful with a beard.
On a more serious note, I think you've gotten the wrong impression. I certainly thought I made it clear when mentioning that Muslims don't burn heretics at the stake and commenting on how practical Islam was that Islam during the middle ages wasn't nearly as dogmatic as the Catholic church.
However, I think you're unintentionally using a Christian viewpoint when discussing the idea of whether or not the Quran is "literal" or not. Whenever I've read Islamic clerics like Khaleel Muhammad or Khaled Abu El Fadl criticizing Salafi clerics I've never heard them complain "you're taking this literally, these are meant to be allegories" the way liberal Christians argue with Fundamentalist Christians.
Instead, El Fadl and co. tend to come across more like liberal law professors, like Alan Dershowitz, argueing against conservative supporters of "original intent" such as Robert Bork. Dershowitz never argues that the Constitution shouldn't be taken literally, just that Bork is interpreting it incorrectly. In fact, I think one could make a very compelling arguement that throughout history most scholars attitudes towards the Quran and the hadith have been comparable to how legal followers of the concept of "a living constitution" have viewed the US constitution. An obvious corrolary to this would be to suggest that the Salafists who want to ignore every "innovation" in Islam since the third generation after Muhammad are similar to followers of the Federalist society, something which I don't think either Scalia or Alito would find terribly amusing.
My point is that Alan Dershowitz and Antonia Scalia don't argue over whether the Constitution is to be taken literally or not, they just argue over how to interpret it, and numerous legal opinions and Supreme Court decisions have proven that it's very easy for legal scholars to come up with many dramatically different interpretations of the same few sentences.
My understanding is that it is the same for Muslim scholars.
However, keep in mind that during the Middle Ages while Islamic scholars had more room to maneuver than Christian theologians they still had limits on what they could do. Remember,
Ijtihad was largely crushed, or at least crushed among Sunnis, for a reason.
Moreover, I've never heard of any Islamic scholar, not even the most liberal ones, saying they thought the story of Adam was meant as a fable, whereas lots of Christian theologians think that, and I think the story of Adam is incompatible with evolution.
My own personal belief is that most Muslims and Muslim scholars have simply learned to ignore the fact that the two are incompatible because Islam is a fairly practical religion and that's why as I stated previously, most Muslim governments do teach evolution.
However, I still maintane that medieval Islamic scholars would have been troubled by something that so completely contradicted a passage in the Quran.
Oh, and my mention of the four corners was meant to be more as a joke though, my understanding was, and please correct me if I'm wrong, that most early Christains, Muslims and Jews accepted the idea that the Earth was flat and had four corners.
As to the circling of the Kaaba, thanks for the correction, I should have known better than to trust Karen Armstrong.