Oh, I'd expect such an environment would ultimately conduce to what we see in George Orwell's Animal Farm. There was a whole lot of lip service paid to tolerance and equality in those pages; but in the end, some animals were "more equal than others."
(2) what would a "free speech" environment look like, (since ultimately "free religion" would be covered by free speech)....and how would that look different than a tolerant-but-atheist environment?
I imagine it would look like a civilized society. Free speech, freedom of conscience (religious liberty) are essential to check the libido dominandi of would-be tyrants seeking to amass and consolidate sociopolitical power in their own hands.
FWIW. You ask such great questions, xzins!!! These would be my answers, off the top of my head. Other people's answers will likely differ.
Great answers, betty boop! Thank you for the mental images!