I think the religion can be based on fallible literature. I base this belief on the postulate that no human endeavor is infallible, and scripture, even if god inspired is produced by humans.
Furthermore, I think that god gives us clues that we should not take scripture literally. One clue is that he/she allows contradictory scripture to be written. Then there are specific clues like the two days in the genesis story of creation that got switched.
So if you accept my postulate of fallible scripture, and accept the proposition that the world is full of religions, then obviously religion can be based on approximate scripture.
But in addition, I contend that god diliberately sends contradictory messages to different people. The reason- perhaps to get the peoples to be opposed to each other for some higher purpose. Not the sign of an all powerful god.
I had a personal experince with this. I was communicating with a channel of god, according to the channel, who was supporting my opposition to the deployment of Star Wars in 1987. At the same time the channel was dictating to the Church Universal and Triumphant(CUT) in Montana advising them that they should promote the deployment of Star Wars. I knew this because CUT publishes all their channeled dictations. So one day I asked my channel "What gives. Why the contradictory advise?" He vacated for a minute. Guess I caught him by suprize. When he came back he claimed that the CUT dictations were an experiment. Pretty wishy-washy answer I thought. Reagon was probably getting the same advice as CUT.
Well. it turns out that after the Berlin Wall came down, (in a talk at Princeton given by one of Gorbachov's Ministers, whose name I cannot even pronounce let alone spell, something like Bismarach,) the Russians admitted that two things brought down the Berlin Wall
1. Chernobyl- which convinced them that nuclear war was unwinnable, and
2. Star Wars- which convinced them that US technology could not be compated with.
So I see the hand of god in both of these reasons. my conclusion is that what we call god is not so all-powerful, and is just doing the best he/she can to keep us out of trouble. Dictating contradictory scripture is then by design. God does not want us to become enslaved by dogma. Moses essentially said the same thing when he provided rules for making new laws.