To Nazz: This question also used to puzzle me:
I think the answer to your first question is:
Yes, many non-believers are better humans than muslims.
But being muslim and testifying the Shahahda
'There is only one God Allah, and Muhammad (pbuh) is his final messnger'
This is the most weighty good deed in existance. This is the most beloved deed to Allah ( I can give you bukhari ref if u want), which will carry all muslims to heaven eventually.
The non-belivers miss out on this one simple yet weighty deed, therefore on the last day there balances wont be strong enough to enter heaven.
Infact, this is the principle belief that the non-muslims reject, which is the biggest insult and biggest sin infront of Allah.
The good deeds they do, they will recieve all the due rewards for those in this world, not in here-after.
Therefore maybe this is the answer to the question, that why the west is doing so good, and many non-muslims r so succesful and thier prayers and needs (many a time to fake gods) are answered.
I feel this is the rewards of their good deeds of this life.
Why we muslims are often doing badly, is because of our sins and neglect of the Sunnah. We are being punished and tested in this life to bring us on the right path, also hopefully we will be spared of the big punishment by taking some in this life.
Just because you r muslim you will go to heaven?
THAT IS INCORRECT.
The shahada is the 'passport', but the entry time ('visa') from Allah, depends on your deeds.
many muslims are muslims only by intention (i.e saying shahadah), but not on deeds, commit many sins, neglect sunnat.
Such type will be briefly destined to hell, as punishment, but eventually go to Heaven, due to having possesion of the shahadah.
So therefore just because we are muslim it does not mean we automatically go to heaven.
Muslims that are liars, drinkers, cheats, immorals, etc will definitly have to account for it.
But we are indeed grateful and Greatly blessed to be born as muslims in the first place.
As the Brother stated above, the Jews were the chosen people, but because of their ungratfulness and deviance from faith, Allah withdrew the favour from them and lended it to the arabs.
May Allah make us all steadfast in the deen.
Hope this benefits