300 years ago the Ottoman Empire was in full swing and quite religiously and ethnically diverse (probably more so than modern Europe or America). Not to say everyone had equal rights or was nice to each other, but historically a cornerstone for the success of many (not all) empires has been a significant degree of diversity and tolerance of both religions and ethnicity. It also wasn't new, Rome was also quite diverse and tolerant. (not always, not to everyone, but still quite so)
Ancient empires were even more diverse, with civil wars often arising more along economic lines than ethnic or religious ones.
In other words, religious tolerance with polytheistic societies looks a lot different than the "my god/prophet vs. yours" which is much more prominent with monotheistic religions.