You're right that Europe is far more accepting now but this isn't because the religion has changed (Christianity), it's more to do with the fact that people have become less religious and more civilised and tolerant which is the best way forward. How many 'Christians' will regularly go to church, abstain from sex before marriage, only have kids during marriage, stay married till death and not steal or commit adultery. You'll find that the Bible has just as mush violence as the Koran as well as far out events like the the Noahs Ark and Moses And The Parting Of The Seas but how many of us believe 100% without hesitation that this is fact? Find a committed Christan and they'll still tell you things like homosexuality is wrong as well as sex and children outside marriage as that is their interpretation of the religious scriptures. I guess you can say Religion has lost its dominance in Europe and actually plays very little part in Politics and Governance, a lot less than America anyway.
Now you look at the religions of both Islam and Judaism, the followers are almost always very committed and it is very hard if not impossible for them to accept non jews/muslims into their inner circles as there is a strong need for a lot of faith. This is maybe why you get so much intolerence and isolation in the Muslim and Jewish communities as well as the most religious fanatics. This is why the Middle East will never be as open as the likes of Europe, we've shaken off a lot of the religious shackles of our past but this is near impossible in the religions of Islam and Judaism, not in our lifetimes anyway.
In respect of the Mosque Planning application I say let the Planning Office decide based on laws/rules and regulations, if the application fails then make sure it fails for a legitimate reason that has some legal standing, otherwise won't the terrorists have won by getting you to bypass your own laws? And those who think that the fanatics will see this as a victory for them should not worry about what people/groups outside the US think, America should make decisions based on its own laws and legal proceedings free from any external influence to show that nothing will change its way of life. In any case most fanatics proclaim that America is at war with Islam and they drum up support from the masses based on this assumption, building a mosque near ground zero would the best way to refute that claim, not that you need to or should have to but it will surely play on peoples minds, especially muslims living far away who only have the fanatics to listen to.