I'll bite on this one.
I do loves a good debate :)
The OT was just that, the OLD testament. With Jesus, a new Covenant was made with Man. The Old ways of God, with smiting enemies and whatnot, was done. God fully gave us this world, it is now ours to make the Kingdom in, or destroy.
Edit:
Not evil, stern. I see it as a parent-child relationship. During OT times, we were like young children. If Man got out of line, he diciplined us, just like parents may spank a young child. It doesn't mean the parents are evil, just that that is all the child will understand to act right. God's relationship with Man was the same in that time.
Now, our relationship has matured. Man is more like an adult child of God. God is still there, just as my parents are still there, but He won't punish us in the same way as when we were children. Just like my parents, He is always there when we need him, but He lets us live, and doesn't force us to live by his rules.