You're right that Turkey is certainly no Switzerland! For the most part, the country still lives in third world conditions excepting the larger urban areas like Istanbul, they still look upon most women as property and they still participate in the slave trade. Depite the fact that Turkey is definitly still moving in the right direction, it's still not what anyone could call "free". Sure, the government ALLOWS small pockets of other religions to exist that have been in existance for centuries but the mass of the population is still (and has been for thousands of years) highly intolerant of faiths other than Islam. Besides, what happens when those currently in power die or are deposed? Right back to the old way of doing things, I'll bet.
It all keeps coming back to the fact that Islam does NOT teach peace. It teaches the assimilation/annihiliation of "non-believers" and, sadly, too many Islamics still believe this is the road to their salvation (hence, the suicide bombers, etc.).
Where did you hear this? This contradicts what I saw when I was there.