Good points all
Beleive me, I understand the outrage, and that it doesn't spring from rascism. And TB's got a point: if I were among those who are guiding the location of the new mosque, I'd have done all I could to steer discussion away from Ground Zero. Whether or not it's intended as a finger in America's eye, it's too easy to perceive it as such.
OTOH, if they were actually to situate it between a Hooters and a Piggly Wiggly, I might have to convert. (At the risk of diluting the point, though, could we make it an IHOP and a Sonic?)