Who is more intellectually honest, the fundamentalist (the bible is literal) or the moderate (the bible is figurative)? Why?
Either. Or neither, depending. It depends on the point of view of the person reading.
Intellectual honesty is a matter of approaching the material in good faith. As long as the person is trying to derive meaning from the text rather than to shoehorn the text into a meaning that was decided ahead of time, either one can be intellectually honest.
I've heard people (usually atheists or other non-Christians) say that it's "intellectually dishonest" to adopt anything other than a literalist view of the Bible. I disagree.
While it would be dishonest to simply disregard passages because you don't like what they say, it's still possible to appreciate passages as poetry, metaphor, or in other non-literal ways while still being honest in your approach to the material. I think it all comes down to
why the person has decided to interpret a given passage non-literally (or literally, for that matter).