whether people born into the Islamic faith have an advantage over other people, who are born into into other faiths and raised in that environment?
no, there is no advantage....
according to islam every one is born muslim. So every one is equal.
Islam removes all the impositions of barriers and classes among the members of the Islamic society in order to enable them to enjoy and practice their legitimate rights. No discrimination of any type is allowed in Islam.
Regarding your first question, everybody in Islamic society is considered as equal. Messenger of Allah:saw: clearly states this as:
**“Oh Mankind! Your Lord is One. Your (grand) father is one. All of you belong to Adam (peace and blessings of Allah be upon him). Adam is created of soil (earth dirt). Truly, the most honorable person in the Sight of Your Lord, the Almighty Allah, is the most pious among you. There is no superiority for an Arab over a non-Arab. There is no superiority for a non-Arab over an Arab. There is no superiority for a red (race) person over a white person. Likewise, there is no superiority of a white over a red (race) person except for the level of piety (mindfulness of God, the Almighty Allah in life and practices)”
I hope this answers your question.
^^ is tht the last Khutaba of Holy Prophet PBUH (khutba hijt ul Widah)