I see what you are saying. But Islam is all about monotheism. There is no lesser Gods involved.
yes, i see your point here...Jin are not really gods, but i guess it all depends on opinion, to me they certainly seam just like gods.
I agree with you that a baby is born agnostic, in the sense that he is not committed to any religion in specific. However, as already explained a baby is a Muslim in the sense that he submits to God, so once again it's really a matter of prospective. Yes, yours is based on lesser assumptions. I'm just explaining why we view it in that way. God created things, they are all submitting to him, except for human beings. They must choose to. However, when they are newly born they still don't have certain abilities that people have after a certain point. So, in that state, they are completely submitting to God. This is how i view it.
I do almost get what you are saying, that because babies dont have religion and such they are still within the Will of God...but it does not explain (and even is evidence against) why Islam is the Will of God, which is a big part of the explanation to me of Islam
As for free will, there is no contradiction really. God predetermined the outcome of things. But there are different ways we can get there with. He already knows which way each of us will take, but he didn't make the choice for us. He just knows it. That raises other questions, but that should be for a different thread. There is another thread called "the basic beliefs of a Muslim", in which this subject was already raised, may be you'd like to continue it there.
I like very much how you are explaining it, but IMO allowance constitutes Will.