You suggested them to read Nietzsche and from it you got he mourns the decline of religion through all of his works? Maybe you should also get a re-read.
The decline of religion is stated as a fact, killed by men's rationality and evolution.
As any evolution it has opportunities and risks, in this case the bigger risk is the loss of morality.
But the only thing he clearly advocates for is overcoming religion and God because they are not needed anymore. The new Man should make its own meaning and rules.
It's the whole concept of the übermensch which is the single central point of his all system.
The quote is not supposed to be his opinion (not directly at least), it's a character in a story.
It's like taking the stance of Cephalus in the Plato's Republic and say it's Plato's opinion, while it's clearly just a tool to let Socrates speak.