Islam is correct when it says that God does not have form, but it just one side of the coin. A half truth not the complete truth, though that truth is sufficient to acquire God or eternal bliss. However, Islam does not provide any information regarding other aspect of God with form.

It mny be that Prophet Mohammad acquired the divine bliss of formless God and hence it advocated that God is formless. But many others have acquired divine bliss of God with form and both of them are right. In Hindu too, many saints advocate worship of formless God. That branch in Hindu is called as non-dualism. Many have acquired divine bliss through non-dualism. But there many are others who acquired divine bliss through devotion which says God can be perceived by worshiper in exactly the same way as he would perceive any other worldly person, after the heart is pure.

Saints, who are divine, come down to this earth. It follows that, God, who send saints to this world can very well descend to this world himslef. If saints appear like material persons outwardly, God too would appear like worldly person outwardly, but God and saint still remain divine.

Therefore the argument that divine persons, including God, cannot be seen in worldly form has no validity. Otherwise all saints including Prophet Mohammad would be invisible and we would here only their words. But that was not the case. Many saints were married, had children. They outwardly behaved like any other material person keeping their inner divinity intact.

Thus both statements are correct: God does not have form and God has form.