It is not good to reduce this verse to a question of religious identity.
The verse is speaking about humans (and jinn) in general. Human beings have the potential to ascend above the level of the angels, or descend lower than the level of animals.
One of the purposes of the human life is for the human being to develop their spiritual and human potential. People who do not use their God-given capabilities to think, reflect on, and draw lessons from the world around them (including to consider what is right and wrong and their reason for being), who focus only on consuming (like cattle), who blindly follow others (like sheep), or who care only about indulging in their animal desires fail to reach a minimum level of their God-given potential and, as a result, end up in Hell. This is especially true if their appetites and apathy leads them to harm others, take away the right of others, or blindly accept injustice.
So, basically, God created Hell for human failures.
(Obviously this verse is not about people who genuinely are unable to contemplate some things, for instance, if they have a mental impairment.)
This is independent of whether a person identifies themself as a Muslim or not. Of course a true Muslim - not just a Muslim in name - would strive to rise above their animal side and would take heed of the Qur'anic injunction to think, reflect, and ponder on God, the creation, the human being, ethical matters, society, and how to live.
