My take on this:
D&D is not, of course, inherently evil.
However, there are problems with the game, mostly concerned with when folks take on the role of "evil" in the game, and/or glorify evil, devils, demons and such.
An example?
Necromancer Games. Now, I like Necormancer Games. I like that they will produce Judges Guild items. I get the impression they are pretty nice folks over there.
I don't like their name. The very title is suggestive of evil, and they've adopted Orcus as as a sort of "mascot." To me, this is the wrong focus.
D&D should be about emphasizing good over evil, and how good wins out in the end. When presented that way, it can be a positive influence.
If I had to give the game itself an alignment, I'd call it neutral. It's goodness/evilness, like most things in life, depends upon how it is used.
Personally, I never play evil characters, I don't play in evil parties, or with players who like to play evil characters. Aside from the fact that I think that routinely taking on the role of evil in a game is, at best, unwise, such games tend to devolve into characters attacking each other and such.
I think that D&D can be compatible with "bible-beater" types. There is nothing in the bible that says it is wrong to fantasize about being a holy warrior who defeats evil. In fact, such things might even encourage better behavior in general in society.
I like D&D. I consider it to be compatible with christianity (and other religions) For those who are the quite strict in their beliefs, the game can be structured to accomodate that by removing all the "pagan" gods.
Generally, that's the biggest stumbling block for strict christians - the presence of multiple gods. That's a tough one - I've been mulling over how to introduce the concept of "God" into D&D without losing the flavor of the game. I think that whoever cracks the code on how to do that will be responsible for greatly expanding the social acceptance of D&D.