religious diversions?

(1) Does "religious diversions" mean "religious merry-making"?
(2) Does "he appears shamefully" refer to "he is almost shameful in the eyes of (his neighbors)"?

Context:

It is terrible that we all die and lose everything we love; it is doubly terrible that so many human beings suffer needlessly while alive. That so much of this suffering can be directly attributed to religion!ato religious hatreds,religious wars, religious taboos, and religious diversions of scarce resources!ais what makes the honest criticism of religious faith a moral and intellectual necessity. Unfortunately, expressing such criticism places the nonbeliever at the margins of society. By merely being in touch with reality, he appears shamefully out of touch with the fantasy life of his neighbors.