I would posit that this episode is not a perversion of religious fact but a unobtrusive literary allusion. Being an English major, I naturally assumed that Whedon was referencing Moloch as Allen Ginsberg imagined him in Part II Of Howl; Moloch "whose mind is machinery," a metaphor for the coldness of industrial capitalization that Whedon may have been extrapolating to include the digital information age. Not only that, but no where in the narrative of the show does it ever directly suggest that Moloch was created in the middle ages; all it suggests is that he is an old form who existed as far BACK as the Middle Ages. He could have been released and rebound countless times before that. And in the mythology of Buffy, could one man's demon not be another man's god?
I'm also a bit confused with your final statement, that everything after the bible is a fabrication. Are you suggesting that everything before and including the bible is firmly set in reality? I would suggest that everything ever written down is a fabrication of some form or another. Fiction and literature didn't just spontaneously come into being after the biblical canon was established; their roots are just as deep as those of religion.
In conclusion, regardless of how intelligent a television show has the potential to be, it's still just a television show and its primary concern should be to tell its own story. The average viewer most likely has no idea who Moloch, the Phonecians, or Allen Ginsberg are, but they will still be able to follow the narrative and perhaps even walk away from it with a different understanding of how the internet affects our ability to communicate with one another. That is the most important aspect of this episode, not where Whedon got his ideas for naming demons.
And I agree, being a technopagan sounds pretty awesome.

The real question is, who cares? It almost frightens me a little that there are people who analyze these things so closely that they even notice trivial details like that in the first place. I watch Buffy to enjoy the story and content, and picking little things like this apart is just getting in a little too deep for me. It's entertainment folks, not reality. And besides, it wasn't like they were working on a huge budget during Season 1 anyway.

I noticed that too, and what is even stranger is that most websites list Buffy Anne Summers as being born on January 19, 1981. Go figure.