@jno I see where you are coming from, but I disagree, at least in this instance. This is a university, a place of new ideas, new ideals, new people and experiences, in a society that is secular and diverse, but one where a perceived offence to religious sensibilities has caused the authorities to put in place something that amounts to a blasphemy law.
As for your analogy/situations reversed scenario - I would not dream of advertising an atheist stall in Saudi Arabia, since it is not a secular, diverse, democratic or progressive country at all - quite the opposite. My policy there would be a variation on the "when in Rome " response :)
I am in broad agreement with this article
http://freethoughtblogs.com/butterfliesandwheels/2013/10/the-return-of-the-pineapple/
Even Dawkins has felt impelled to make a series of tweets on this issue;
"Sarcasm aside, the serious point is that religion should not be a privileged source of "offence" any more than any other source."