My take was that this isn't the major issue the Left is trying to inflate it into.

We can go over the actual legal case if you want (Lown et al. v. The Salvation Army), an ACLU drive-by in New York targeting the Federal faith-based funding program, and apparently based on a local SA official throwing his weight around. You can start here.

I would have thought that mentioning millions of people who work with the SA without apparent problems might have made some impression on how localized and isolated this problem was.

With a change in administration, one of two things will happen:

A) The faith-based programs will be killed. End of problem.

B) Obama will continue the programs, but since he's The One, liberals won't care any more. End of problem.

The Salvation Army has done more good than most government programs ever have. That still stands.