I disagree pretty strongly with Craig's way of defending such things as the ban on the Amalekites. At the same time, if I refused to engage anyone who held a position that I considered to be morally repugnant, there probably aren't going to be a whole lot of people to talk to.
I don't really have trouble with the idea of Dawkins refusing to debate Craig, if, for example, he thought that the sort of timed debate that Craig excels at would be a bad venue for him. The problem is that his work attacks religious belief but never comes to grips with such things as the Kalam Cosmological argument, or some of the other arguments Craig uses.
It's one thing to be poorly informed about theology. It is another thing to be poorly informed about the kinds of arguments that are used to defend belief in the existence of God.
Dawkins makes the claim that the theist is delusional, by which I take it he means that the case against theism is overwhelming. Yet he doesn't, in any serious way, engage any of the arguments in natural theology, and he seems to imply that it is beneath him to engage leading defenders of belief in the existence of God, and their arguments. I don't care whether he does it in a debate format or some other format, but somewhere, somehow, he needs to show that he knows how the Kalam Cosmological Argument and the Thomistic Cosmological Argument restrict the class of what needs a cause, so that a simplistic "Who made God" can't refute them in any direct way.
Craig is a leading defender of arguments for the existence of God. Regardless of whether some of his statements are morally repugnant, Dawkins needs to come to terms with him and those like him if he is to have any credibility with respect to his delusion charges. Putting his nose in the air with the "Courtier's Reply" does not replace confronting the actual relevant arguments.