The point that I found strange the alleged letters of the Nabi (P) to neighbouring countries asking them to 1. Accept Islam, if not 2. agree to live within an Islamic state as dhimmees OR be prepared for war. Is that what the Qur'an says? The whole discussion was revolving around Surah Taubah and this surah if not properly understood, leaves the impression that the above notice was the right thing to do.
However, then we are faced with how to deal with the command "No compulsion in Deen".