1. Please supply the full context that makes it morally right to kill babies, women, and other civilians, and to commit genocide.
We are talking about the context of a war. Yes, there will be innocent casualties. However, one also has to remember that many of these wars were not caused by the Hebrews. The Hebrews were also under attack over and over again. And even when the Hebrews are at fault, such as conquering the Holy Land, we have two accounts of such. So it really isn't just black and white.
More so, I think if one looks at the passages from a point of view that demands that God is involved in everything, one is easily justified in believing that when one does something, it is in part because God wanted it to be done, and that it has a greater effect that they can possibly know. This is the thought process that was going into the writing of the Bible. They believed that God was involved in their lives, and thus they reflected that. Does that mean that God necessarily commanded them to do something we now consider immoral? Not at all. But since it happened (we must also remember all of these writings happened long after the fact), the idea was that it must have been because of God. So even though it may have been a human command, the driving force was still God.
As with specific contexts, without picking out every verse, deciding whether or not it was attributed to God, or to human, etc, I simply can't give a full answer.
3. Of course, the only reason they were at war was because God commanded them to go conquer and slaughter their neighbors, who had the misfortune to live on the land God wanted to give His people. That's the context.
Actually, we see many other groups also instigating war with the Hebrews. Yes, God promised them the Holy Land, and they conquered it to a point, but they were also frequently attacked by others as well. So it isn't just black and white.
4. I would not be surprised if that was common practice; I don't know. But the Hittite war practices are not being held up as a source of moral guidance in today's world. YHWH is.
Why should we hold it up to today's morals standard though? Who is to say that today's moral standard is the last word? If we think of the advancement in the last thousand years even, it is not out of question to think that in another thousand years, morals standards will have shifted again quite considerably.
If it's your holy text, and you pick and choose which parts you like, you're not being consistent. If it's not, then you're free to do so with no loss of consistency.
For me, I don't derive my beliefs from the Bible, or any holy text. And I think that is best. You have definitely shown some good points, that if taken completely literally, and everything is followed, it will end up being problem some. That I won't deny. Especially when some horrible atrocities have been committed by people who use the Bible as a crutch.
At the same time too though, the Bible is a difficult book, especially if one takes the Jewish position that there is also the oral Torah. Just the debates that exist in the Jewish religion would suggest that the Bible is not clear cut.