I´m not that well versed in biblical studies as you are. But I know that Craig has debated him once.
It should be clear that Avalos has an axe to grind. But do you have any thesis of his in mind that requires answer, besides the assertion that you have quoted? Because this, it seems to me, can safely just be dismissed as the statement of, as you rightly say, an angry fundamentalist, no better than threatening someone with hell for not following my position.
I also want to mention that around 18 months ago I read a review of of one of Avalos´ works (I think “The End of Biblical Studies”) by an agnostic scholar who accuses him of following an agenda. I really tried to find it again for you, but I couldn´t and the search results mainly come up with fundamentalist Christians and Atheists and endorsements by Robert Price. Ugh!
E: Search Result | Reasonable Faith
Maybe you find something of interest on Craigs site. He mentioned him sometimes.