Second, and more importantly, Deuteronomy is part of the Christian canon and for many a Christian (Craig included) all of scripture is God-breathed and without error. Despite the suggestion in his article, Dawkins is wrong to view Craig as an extremist beyond the pale—his views are consistent with a large cohort of the world's evangelicals, that God really did command the destruction just as Deuteronomy records. In refusing to debate Craig, Dawkins has refused to engage with many (and probably the majority) of the world's Christians. That may be a way to gain plaudits from the more militant atheists but it is not a recipe for changed minds, and being forced to face up to those verses Dawkins highlights is likely to change some minds.
... and the winner is?
Dawkins is not a stupid man and for that reason I do not for a moment believe that his refusal to debate Craig has anything to do with moral outrage over Craig's comments. Craig is an effective debater—he does it for a living—and is well rehearsed and winning debates (which often has no correlation to the strength of the respective arguments). Moreover, Craig's debates come with a slew of promotional material and conservative Christian support and (sometimes) misrepresentation which the more established figures (e.g. Archbishop) simply don't support. If I were Dawkins I might well think it's not worth the effort. As it is, there is no debate, so I guess one has to call it a stalemate, which, since I'm no fan of Dawkins or Craig, is no bad thing.