"Because where Nietzsche hates the religion and the Judeo-Christian religious and moral concepts overall, he DOES quite often give respect and even credit to the Jews as a race."
Yes, it's precisely as you described it above. "Watch out, they're a crafty bunch." Respecting the capabilities of your enemy does not make them any less an enemy. Nietzsche says the following: "That the Jews could right now have the ascendency, in fact literally the supremacy, over Europe if they wanted it, or if they were forced to take it as the anti-Semites seem to be after, is certain."
It seems pretty clear-cut that his "praise" of the Jews is more of a "they can take over if they so desire, they're that powerful". Obviously, in order to implement this kind of moral revolution, the Jews in Nietzsche's mind had to be powerful. Nietzsche also repeatedly calls the Jews a 'nation', comparing them to Germans and the Chinese. Kind of hard to separate out the race/religion question if he's doing this. Now, he elsewhere says they are more res facta than res nata, but he still treats them as res nata.
"Yet the priests are, as is notorious, the worst enemies — why? Because they are the weakest. Their weakness causes their hate to expand into a monstrous and sinister shape, a shape which is most crafty and most poisonous. The really great haters in the history of the world have always been priests, who are also the cleverest haters — in comparison with the cleverness of priestly revenge, every other piece of cleverness is practically negligible. Human history would be too fatuous for anything were it not for the cleverness imported into it by the weak — take at once the most important instance. All the world’s efforts against the "aristocrats," the "mighty," the "masters," the "holders of power", are negligible by comparison with what has been accomplished against those classes by the Jews."
So the Jews are an example of weak, slave race, and are crafty and sinister and responsible for all the world's ills. But that's not anti-Semitism because he doesn't explicitly say they should be exterminated - at least word for word - although he praises the Romans' efforts in trying to get rid of them, and has no problem with extermination as such.
Nietzsche says:
"A thinker who has the future of Europe at heart, will, in all his perspectives concerning the future, calculate upon the Jews, as he will calculate upon the Russians, as above all the surest and likeliest factors in the great play and battle of forces."
So in essence, one must consider the power of the Jews just like Germany must consider the power of the Russians. Many a Sovietologist described the Soviet 'enemy' as a powerful force that would surpass the US if they did not do something drastic. This is the same kind of thought.
Furthermore and interestingly, Nietzsche talks about the triumph of the Jews as a 'blood poisoning', because of the intermixing of races.
"Let us face facts: the people have triumphed—or the slaves, the mob, the herd, whatever you wish to call them—and if the Jews brought it about, then no nation ever had a more universal mission on this earth. The lords are a thing of the past, and the ethics of the common man is completely triumphant. I don't deny that this triumph might be looked upon as a kind of blood poisoning, since it has resulted in a mingling of the races, but there can be no doubt that the intoxication has succeeded. The 'redemption' of the human race (from the lords, that is) is well under way; everything is rapidly becoming Judaized, or Christianized, or mob-ized—the word makes no difference."
And to any who believe that Nietzsche did not express himself in explicitly racial terms, did not oppose race-mixing and did not want to preserve the supremacy of the 'Aryan' race, I have this.
"In the Latin malus (which I place side by side with m e l a V ) the vulgar man can be distinguished as the dark-coloured, and above all as the black-haired ("hic niger est"), as the pre-Aryan inhabitants of the Italian soil, whose complexion formed the clearest feature of distinction from the dominant blondes, namely, the Aryan conquering race: … good, noble, clean, but originally the blonde-haired man in contrast to the dark black-haired aboriginals. The Celts, if I may make a parenthetical statement, were throughout a blonde race; and it is wrong to connect, as Virchow still connects, those traces of an essentially dark-haired population which are to be seen on the more elaborate ethnographical maps of Germany, with any Celtic ancestry or with any admixture of Celtic blood: in this context, it is rather the pre-Aryan population of Germany which surges up in these districts. The same is true substantially of the whole of Europe: in point of fact, the subject race has finally again obtained the upper hand, in complexion and the shortness of the skull, and perhaps in the intellectual and social qualities. Who can guarantee that modern democracy, still more modern anarchy, and indeed that tendency to the "Commune," the most primitive form of society, which is now common to all the Socialists in Europe, does not in its real essence signify a monstrous reversion – and that the conquering and master race – the Aryan race, is not also becoming inferior physiologically?"