Because the world is made of 4 elements, there are 4 main religions. Christianity and Islam mostly say that God is separate from us. In Christianity God is a person, in Islam, God is more abstract. In Hinduism the definition of God gets even more watered down so the self is the same as God. And Buddhists who are more down to earth get rid of that confusion altogether and say that there are no gods, and that's why Buddhism is all about the self and self-realization a.k.a. God-realization.
In the Zodiac of religions Christianity is fire, Islam is wind, Hinduism is water and Buddhism is earth.
By your logic, Hindus are atheists. Does it have to be either theist or atheist? Reality is not just black or white. Atheism and theism are "two" different perspectives of the same reality.
what you descripe here is evolved logic.
-Christianity: lowest form, God must be a person.
-Islam: second to lowest, God is is here somewhere we just do not know where.
-Hinduism:thrid to lowest, I am god and so are you.
-Buddhism: forth to lowest, there is no god.