I don't understand people who feel that Professor Dawkins mocking and ridiculing insane beliefs are doing a disservice to atheism. Isn't "respecting" someone's outlandish beliefs just being condescending and effectively infantilizing them?

Yes... I can see how "mocking" could be counterproductive as a tactical maneuver but where does one draw the line? What if someone's sincerely & deeply held belief was that they were born on Mars... or that they could fly into outer space by flapping their arms? Do we look at these people and with a straight face say "Yes.... I truly respect your views. They are just as valid as evolutionary theory or quantum theory"? Is it only certain crazy biblical theories we have to respect? What about other books? How old does a crazy theory have to be before it "earns" our respect?

Remember that the transmogrification of the wafer and wine (as I understand it) means that it LITERALLY turns into Jesus's body & wine (not symbolically). Some people believe that the "miracles" actually happened! Not that they are just metaphorical!