I have read this chapter at least three times now and still feel like I don't grasp it all. It seems to me that the writing jumps around a lot. I think he is discussing one thing - giving an example and discover that he is on a totally new topic. I just found this chapter to be unusually hard to follow his way of thinking. With that being said...
The correspondence theory says that a proposition is true if it corresponds with facts. So isn't this true of God/religion also? God must be a "true" being since the facts of the bible say so. And just because God is true doesn't mean I have to believe in some type of religion.
I was baptized as a Mormon because I felt something in my heart/soul each time I met with the missionaries or prayed. But one year after having to obey the "rules", I went inactive. I don't believe God doesn't want me to drink caffeine. I don't believe I have to spend three hours in church each Sunday just to prove my devotion. And I don't believe that I have to "save" each member of my family to live together in the celestial heavens. Being inactive doesn't mean I don't believe in God.
In some ways I agree with Palmer on (see page 191) regarding his statement that if people believe in God's existence they will be nicer to their neighbor then if they don't believe. However, I have also met some religious fanatics who do believe in God's existence but they aren't nice to their neighbor, they are judgmental and false. William James left untouched the real question of whether God really exists or not.
I think that God does exist but I also think that this topic can't be broken down into a rational way of thinking. I think that God is something you feel in your heart, your soul or your spirit. Palmer touches on this in the section of Religious Mysticism - spontaneous implosions. It just seems to me that there are some things you shouldn't question, you just accept. Such as emotions, falling in love. You don't question why you love this person, is it smart to love them, what makes you love them...you just love them unconditionally. You either accept God or not.