Opium:
If you read from first verse of that particular Surah you will see that this is a reference to the Mushriks of Makkah. After 13 years of persecution the first Muslims left Makkah for Medina, the Mushriks followed them there and made war on them for 9 years. The verse you mentioned was then revealed. It cannot ever be used in reference to Jews and Christians as they are not considered Mushriks. Further the title of Chapter nine is Al-Taubah meaning repentance or forgiveness and this is indeed the main subject matter of the chapter.
Submission to Islam is not required of Christians and Jews, only that they be righteous and upright. It would not make sense otherwise as Muslims believe they worship the God of Abraham, the same God that is worshiped by both the Jews and Christians.
As always your opinion is your own, I merely wished to provide an alternate view.
I haven't read that.... Do muslims believe that Abraham is a hebrew and the father of Israel? If not, its not the same God. Also paradise is not at all the same... All things of the flesh will die, like desire and lust. The same God would mean the same afterlife. I have decided to go buy the Quran, so I can get the bigger picture and not verses used out of context. It happens with the Bible too often also.