Namaste Asha, thank you for your question. I believe that this is a very important topic, and would like to share my views.
May I ask a polite question what is meant by ''Universalist approach to Hinduism'' ?
As you mentioned, Universalism is the position that all religions have the same goal. Also, it tends to see things such as the performance of rituals, yajna-s, worship of the deva-s (Vishnu, Shiva, etc.) as unnecessary traditional baggage unlike traditional Hinduism which sees them as mandatory for ones Sadhana.
If by Universalism one is implying that ultimately all religions lead to the same end, does it matter if one is to return to a Brahman which is formless or a Brahman which has form ?
Or if we are to merge, or remain eternaly in devotional servitude ?
Surely the universalism comes in the acceptance that each tradition might hold its own veiw and in light of this be happy that each in their own way will atain God consciousness ?
Is there any harm in this, as each tradition may continue to follow its own teachings with the respect and acceptance of others ?
The debate here is not whether Universalism is a
beneficial interpretation of Hinduism. It is, rather, whether Universalism is a
proper/correct interpretation of Hinduism. Can you see the difference? That being said, I am of the opinion that Universalism can sometimes have much more beneficial outcomes than a strictly traditional view of Hinduism. Allow me to clarify...
Traditional Hinduism demands more discipline, faith, and devotion. Many people today see traditionalism as dogmatism, and are highly repugnant to it. As a result many people shun a spiritual life, and adopt a non-religious materialistic lifestyle. However, Universalism - because it is much more palatable to a liberal/open-minded ideology that many people seem to hold today - might just be the right trigger that redirects such people towards a somewhat spiritually-oriented life rather than a completely materialistic one... I know that from direct experience. My appeal to Hinduism was firstly through its Universalistic interpretation, namely, Swami Vivekanandas. The merits of Universalism can be seen from the prevalence of Yoga today in the West. Clearly, Yoga has increased the quality of life of many people in the West. However, if they were actually told to pursue the traditional Yoga, i.e. Patanjalis system of Yoga, the number of people would substantially decrease.
Now, with the above, does this mean that Universalism is a proper interpretation of Hinduism? No, it is not. Nevertheless we cannot deny the advantages of its practicality. Coming to the traditional position of Hinduism regarding other religions, it does in my opinion hold a much more balanced and realistic view. It sees other religious paths as having advantages through the accumulation of good Karma. Therefore, for example, the devotion to God in the Abrahamic religions, or the Buddhist meditation purify the mind and produce good Karma, which eventually merit a good (re)birth in a family of enlightened sages who will help them attain Moksha. The case is similar when it comes to the Hindu traditions. The Advaitin sees the Bhakti of the Dvaitin as leading to Cittashuddhi (mental purification), which results in a good future birth. The Dvaitin, in turn, could see the Advaitins non-identification with matter, and identification with the Atman as also leading to the purification of the mind, and thus resulting in a virtuous future birth. Once again, the feature of mutual respect and tolerance despite existing difference, is very salient in Hinduism.
So, we can see here that Hinduism avoids the two extremes: From one hand, it does not declare the (unrealistic, IMO) conception that all paths lead to the same goal (Universalism), and on the other hand, it does not condemn the people of other faiths to an eternal damnation. [There are hellish places (naraka-s) in Hinduism, however, they are temporary and last only until the exhaustion of the bad Karma-s.]
I hope I answered your question sufficiently.