The cultural/literary/scholarly decline of the arab/islamic world started when Persia fell as a world power. I've read many Persian works of literature and they are beautiful and brilliant. Persia was the glue that held the Islamic world together in an intellectual/ creative way. persian culture seemed to balance the Arabian ideals with the Islamic religion. Once that was over the Islamic religion took over and seemed hell bent on conquest and revenge against the "christian" world that Crusaded against them, and focused moreso on the tenant of conquest for Allah. Also education of the populace became a thing of the past (in no small part..thanks to the crusades).
DTWB, I must say I do believe the "christians" of the Medievel period were indeed anti-semitic and murderers/thieves/rapists/charlatans for the most part. especially pre-Elizabethan. This is not to say Muslims were innocent of any travesties and conquests themselves. Just an observation.
You are correct though that literacy kept christianity from becoming more corrupt and eventually helped it become a religion of mostly peace. Because the common people could finally understand the text and meanings and not be swayed by those who corrupted and tarnished the message.
In America, I know absolutely, that the public school system and universities were created to teach children and young adults to read and study the Bible. It was generally understood in that day that biblical principles would hold American society together by founding it on a moral grounding. That biblical study would lead to knowlegdeable, creative citizenry and create a solid work force dedicated to building a great nation with a solid footing in brotherhood. Those aren't my words they are the words of Dewey and America's forefathers.
The humanitarian stuff I can't verify....