What does the letter to the yemen princes suggest about how muhammad viewed religious tolerance?

According to the letter that Muhammad sent to the prince of Yemen, but also from his many actions during his life, it can easily be seen that the prophet Muhammad was everything but tolerant from religious point of view.

Muhammad was not tolerant towards another religions, and he made that very clear. He pretty much gave two choices, either convert and join me, or die. And it is how it went, people that converted to Islam were spared, and were allowed to join in the conquests of the Arabs, while the people that did not wanted to give up on their own religion and accept Islam, were either forced to accept it, or more commonly were killed.