I had a friend much like this. An intelligent chap and a creationist. Dinosaurs were put there to test our faith (and to cite the late, great Bill Hicks again "Yeah and I believe God put people like you on the Earth to test *my* faith!")
I can't speak for all Christians or religious types but it seems the more science strides forward, the more they dig in their heels. I'm an agnostic, I suspect 'something' more than the physical exists but I certainly wouldn't put money on it. I'll trust a scientist rather than a priest to heal me for example.
Why hasn't religion died out? Maybe because the more we discover, the more cherished beliefs are threatened? Therefore, people cling on to what they believe because they don't like the idea that we could be an accident/there is nothing 'spiritual' at all in the universe. I honestly don't know but it's an interesting question... I also suspect religion and the quest for scientific enquiry are two facets of inherent human behaviour, even if they can (sometimes) be diametrically opposed. Though you do get plenty of religious scientists (I watched an interesting lecture against creationism by a practising Roman Catholic scientist recently which was excellent.)
Mind you, extreme religious beliefs and extreme science are equally mysterious to me. Transubstantiation and quantum physics are equally mind-boggling concepts (and I'm not trying to equate the two or put them on an equal footing, of course, before anyone slags me off!)
Personally, I like a little mystery and not knowing for sure.