Yes that's exactly what this tragic story prove yet again. But I think the problem is the way you see that sentence : faith cannot be trusted as a moral compass mean that if you're wrong, your faith won't tell you so. At all.
What the fuck is any religion 'for' if not as a moral compass. If you invalidate the moral parts of it you are left with nothing but 17,000 years (Herp derp random number. I am sure faith has been around longer) of abuse and... well. Evil.
I mean... Fuck. You still have the social parts of it, but really. Who gives a fuck? If faith is not moral then what is the point? It is invalid. Who gives a fuck.
I hope you won't find yourself agreeing with my point and then thinking this, because that last conclusion is quite short sighted.
You see, religion are, in absolute generality, one of the three things we produced when we tried to explain the world.
There are science, Philosophy, and religion. And religion has been quite important at producing the two other.
As said Nadaka, religion is like an out of control meme, spreading through individuals, mutating each time it reach a new community to adapt with it's culture, and heavily influenced by science and Politics.
It was almost all there was at some time, and has religion, science and philosophy have often been lumped together, all three being learned and taught by the wises mens of the time.
Has Religion been evil, in the definition an humanist would give to evil? Well yes, at time. Good and a motor of progress, well yes at other time. Has it always been nothing more than dramatically human. YES!!!!
That's the problem I have with the church : " We were not always mind bendingly evil!" Yeah, sure, but seriously stop pretending being continuously inspired by the perfect creator of the universe, you're just embarrassing yourselves. And why?
Because FAITH DOESN'T WORK AS A MORAL COMPASS : no one is telling at those terrified mothers "no, that child you loved ten minutes ago is NOT a which and you should not torture it to death". The inner voice in the guys who devoted their lives and skills to destroy the WTC apparently didn't told them "Hey guy, Gabriel here, it so happen that god doesn't want those tower destroyed after all". And when the catholic priests listened to their inner voice to decide what to do, it seems that they told them that the image of the church was more important than bringing child rapist before justice.
So yeah, faith can be a motor or a crutch, but definitely not of moral compass, the same way you'd be unwise to use a watch as a compass. And religion... well Christianity is obsolete.