Post mortem (Eschatology part 1)

I will first admit that I do not have any hidden knowledge about the "hereafter." Like a good Christian, I believe that there is a glorious afterlife in store for us as part of God's Grace. However, whether this will literally be in the clouds or rather some other, noncorporeal setting, I don't know.
What intrigues me, though, is that there have been so many different accounts of the afterlife. Dante presents a three leveled system that many Catholics hold to today. Many Christians today imagine "heaven" as a place in the clouds. Buddhists and Hindus believe in reincarnation--for the Buddhists until one reaches Nirvana. Muslims and Jews hold to a similar afterlife experience as Christians do, one in which we dwell with God. Mormons believe that eventually they may become like God (a topic for another day).
But we have not held on, for time imemorial, to the idea of a glorious and perfect dwelling with God. In the Old Testament, the afterlife is referred to as Sheol. Eventually, as seen in Luke 16:19-28, the idea that we could dwell with exalted relatives started to emerge. Similarly, in the ancient Greek and Roman system, the Elysian Fields came far after the idea of Hades.
There's where we run into the peculiar thing. For some reason, accounts of suffering and torture are more prominent in our ideas of the afterlife than of glory. The Egyptian Book of the Dead proscribes all sorts of punishments that can befall one's soul if one is not absolutely careful on the way to the underworld. Dante's Inferno is far more popular than Il Purgatorio or Il Paradiso. Even in Norse myth, the realm of Hel is solely devoted to punishing souls while the valiant only get a hall in the vast kingdom of Asgard.
From these facts I gather two observations. The first is that mankind has almost always believed in A) a soul and B) its eternality. Even in the most ancient Epic of Gilgamesh, an afterlife is described (though many scholars believe it to be an addendum to the original text). After we have finished our existence here, we go on to still exist. It is as if, like Pascal says, we are afraid of being hurled into non-existence. Man cannot bear the thought that at some future date he will not exist. Hence, we live our lives as if we will live forever. We amass fortunes that we can never spend. We put events off indefinitely. We trash our bodies as if they're indestructible. Man cannot bear to even dwell on the thought that there isn't something after this without falling into utter despair.
This is what confuses me about atheism. How can atheists really hope for becoming a nonentity? The greatest one can hope for, at that point, is to attain the kind of fame that men like Homer, Cicero, Socrates and Vergil have attained--fame that spans the eons. However, in a world with a population ove six billion, this is more of a pipe dream than any kind of reality. Really, our sole source of hope lies in having something to look forward to once this is done.
The second thing that I observe is that mankind assumes more often than not that he (or at least his enemies) will inherit an eternal punishment. Hell, Hades, Sheol, Hel, Outer Darkness or a lesser reincarnation--all of these stand as unfavorable destinies, some of which are unavoidable (most likely because we are corrupt and sinful) and others of which are inherited because of our infidelity. We get what we earn. For some reason, man cannot either escape the idea of being eternally punished, just as he cannot escape the idea of nonentity.
The implications of this problem are easy enough to solve. Catholicism (viz Vatican II), Buddhism, Hinduism, Mormonism (to a certain extent) and most ecumenically-minded people all agree that good works will grant you happiness in the hereafter. So, the logical conclusion would be to take on a two-fold effort: first, to conduct good works; and second, to follow Pascal's wager and have faith in a god.