On the opposite end of the spectrum, you hear a bunch of people raging against this idea of super-PC-tolerance, and what they want from us is basically a lot of Old Testament style condemnation.
I don't think either way is the answer.
When I tolerate something, I allow it to exist. We show tolerance in a way that medieval Christians did not in that almost all of us don't go around killing anybody we think is a heretic. Don't get me wrong, that's definitely progress.
Still, I think that was not what Jesus preached. Neither was the OT style condemnation (otherwise, it would just be New Testament style). He told us to love our enemies and to pray for our persecutors. If that is how we were to behave to people who outright hate us, can you imagine how we should treat people of different religions who treat us well?
Bottom line is, I think we should all learn to respect each other and our different beliefs. What does that mean? Well, first let's cover what it's not, before I'm misunderstood.
This kind of respect does not mean simply agreeing to disagree. For people of many religions, including Christianity, theological issues are not just a matter of likes and dislikes. It is disrespectful to expect others (e.g. those of the Islamic faith) to just accept that oh, yes, well just because we believe that Jesus of Nazareth was the Son of God doesn't mean that they have to believe He's more than a prophet and that those can both be true. That blatantly undermines the rules laid out for us in the Bible as well as contradicting what the Muslims believe.
I'm not saying we don't need to believe we're right, or that we should give up proselytizing. I'm saying that we should do so respectfully. We are to follow in Christ's example. Did He go around, knocking down people's doors and threatening them to repent or face hellfire?
In case you haven't read the New Testament, no. He led by His example of grace and love, and people changed their hearts because of that. Instead of preaching at people, He invited them into His fellowship. He didn't yell "THIS IS THE TRUTH" at them, but instead gave them a reason to want to learn more. So why don't we do that?
I also need to mention that respect is not a "there are many roads to heaven" mindset. That is not supported in the Bible, and doesn't even make sense when you try to apply it to the real world religions. Many of them (especially Islam, Christianity, and Judaism) have a huge focus on the idea of there only being one God, and only being able to reach Him through a certain way. Therefore, stating that all religions are fully true is both ridiculous and offensive. Not to mention the fact that it doesn't really cover atheists!
I do include atheists in the "to be respected" column, by the way. I know that we in the Christian community tend to just see the "crazy atheists" who seem to make their lives out of trying to ruin everybody else's. We're familiar with the atheists who post hate on every slightly spiritual thing, in just the same way that the secular community is familiar with "uber-Christians" who are violent, narrow-minded, and kind of scary. Again, respecting them doesn't mean agreeing with them, but it does mean recognizing that they are fellow human beings and are allowed to have a viewpoint.
This is not incompatible with belief in hell, by the way. As I said above, I don't mean to dissuade people from proselytizing, but I think that everything should be respectful.
Above all, we should value the person more than what we can do with them. It seems like a lot of Christians (and doubtless, people in other proselytizing religions) see unbelievers as just more souls waiting to get into heaven. Please continue to share the Gospel with those you know, but for heaven's sake, the entire reason you're supposed to want them in heaven is because you love them. We're to love the way that Jesus loves—unconditionally. If you really care about the other people in the world and not just your "saved count", you'll do more than just preach at them. You will not only tolerate them, but respect and love them as well.