Actually, I firmly support the right of the Muslim congregation to build there - I just think it is poor taste. As for the argument at hand, I am torn. I really believe that people should be allowed to make their own mistakes and suffer the consequences. However, I don't believe that two-year olds should have to suffer the consequences of their parents' mistakes.
Religious choices become particularly difficult. As an atheist, I try to bend over backwards to protect the religious freedoms of those who do believe (just as I struggle to protect myself FROM religion). As a parent, and as a human being, I have to draw the line when the religious beliefs of the parent harm the child. I am not sure I can logically and/or legally defend my position - but viscerally, I know it is wrong.