No, I do not hold that YHWH commanded the slaughter of the Amalekites. I hold that either God didn't do that, or there are unknown reasons why He did. I can see some reason why God might have commanded such a thing, so that in my view the case against it isn't a slam dunk. So I would not call someone a moral monster who thought that God had given such a command, I think it morally possible that God might have done so, but on the other hand treating someone anyone as outside the pale of moral consideration strikes me as problematic and not in accordance with what I know about God in the New Testament. In other words, I don't see how these actions could be justified without putting some limits on who is my neighbor, and the parable of the Good Samaritan says we can't really draw such limits.
I'm not committed to a theory of inspiration that would require me to defend such a thing. In another part of Deuteronomy, the Blessings and the Cursings, it indicates that people will get earthly blessings if they are obedient to the Covenant, and earthly cursings if they are not obedient. But you only have to look as far as Job and Ecclesiastes to see that that's questionable even within the Bible. People as conservative theologically as the Flannagans don't try to defend the Amalekite/Canaanite ban as morally acceptable.
We are considering the possibility that God had a reason for doing something that seems to go against the grain of morality. Someone who feels committed to a sufficiently high view of inspiration and inerrancy to think that a moral defense of the passages must be available. I think if I were to make such a defense, it would have to be pretty much along the lines of skeptical theism, although, because of the need to preserve monotheism, I can see some of the reasons for it.
Part of this has to do with how much of a consequentialist you are. Does the possibility of good consequences that maybe God can see and we can't justify God in telling someone to slaughter a whole nation of people. I suppose if I were a theo-utilitarian, the possibility would be open that God could command an action, atrocious in itself, which would be justified by its consequences. Never Ever Bludgeon Babies? But what if you know that the baby is Baby Hitler?
I don't concur with Craig's position on this, but I think that it's easy to be too simplistic and glib in criticizing him.