You're right about the tax base. Jizya was too profitable for the empire. But coercion does not come only from the point of a sword, though such things did happen (consider the Janissaries). These people lived as Dhimmis. They were second class citizens who faced persecution. The khilafatul Uthmaniyyah was wise enough to abolish discrimination in the 19th century, but for centuries the only way to become free was to adopt your overlord's religion. Compare the places where dawah was peaceful to the places where it was violent: India was subjugated and remains fiercely anti-Muslim, but Somalia wasn't and is a Muslim country.
People see the actions of muslim rulers and then accept that as a moral standard.
Salvery is wrong and islam sought to remove the institution by doing it gradually, this slowed down by the time of the prophets death scw.
It came to a full stop just decades later and slavery became a profitable enterprise.
Jannisaries were xaram, allot of the actions of the so called khalifas were also xaram.
having harem of women you can f*ck at will is also xaram.
Subjugating people as well.
you are seeing the dhimma from a modern prespective, the treatment of dhimma varied greatly.
If you were in egypt and syria your life changed greatly for the better with the coming of muslim rule.
The people had an oppressive nobility mostly foriegn and greek lording it over and you had a religous persecution for not following official church.
When Amr ibn cas invaded egypt he had the full support of the native egyptians who made up more than 95% of the population,
the same in Syria.
Muslims would not have lasted 10 years if the people were hostile.
and you should note that 500 years after the muslim conquest both Egypt and Syria were over 3/4 christian.