Very confused by ending - was there a baby Nazarene or not?

I thought this film was pretty good so I made it to the end but the last 5 minutes did not make sense to me and I feel a little annoyed to say the least.

Was leading Damien to the ruins just a ruse and there was never a re-born Jesus baby?
Was the baby killed with an iron the re-birth of Jesus or not?
If there was no actual re-birth of Jesus then why did the film waste so much time and so many scenes regarding the alignment of the stars showing where the baby was "born" and hunt for all the babies and killing of them? So was Damien wrong about a baby Jesus being born? That makes a large amount of the film a complete waste of time.

Is it just that the film was left with these plot holes (that may have only been explained in books) and the producers didn't care about making sense, or am I missing something?