The Complete Idiot's Guide to Understanding Islam: Chapter 3

According to Islam, we are all born "good" - how does it then explain the "bad" that exists?

Islam holds that we are all born basically good but have a natural weakness due to our

physical nature. Social scientists call this our desire for pleasure and aversion to pain.

Through these creature instincts we have the capacity to fall into sin.

What are the purposes of the 3 levels of self development in Islam?

• The Animal Self Basic instincts and desires.
• The Accusing Self Higher-order questioning of our purpose.
• The Restful Self Transcending worldliness as a focus.     

How does Islam both accept other religious ideas but is the "last installment of God's will"?

Islam teaches that as a true seeker tries to fully satisfy his or her spiritual hunger. That seeker will eventually move beyond other previously revealed religions and into the Islamic way of life that Allah revealed as His last religious “installment” to the world.

What do you think is the role of the Tawba? How does this play a role in the daily responsibility of individuals? How is this different (or similar) compared to other religions?

Tawba is the only way in which Muslims can remove the stain of sin. This forms the actions of Muslims on a daily basis and what they choose to do and choose not to do. The forgiveness of sin is similar to Christianity. 

Why is Islam not a faith of "good deeds" even if it superficially may seem to be - or as claimed in the reading, it is a form of "religious capitalism"?

Muslims do not have to earn their way to heaven through good deeds, such as in Christianity. They must reach heaven only by surrendering their will to god.

What is meant in the sentence: "Salvation in Islam comes from making the choice while alive to accept Allah and mold like according to the way of life He has established."? 

Making good choices shows one's acceptance of Allah because the way of life he has established is essentially good. 

Revisit / expand on the concept of the Fitrah. 

Fitrah is the essential nature that we are born with but it can become clouded with meaningless pleasures is we take our gifts of free will and intelligence for granted. It is the reason we are born good but can still become bad.