I agree with your analysis, the only point that I'm going to respond to would be the following:
You believe that religion belongs in public schools and government venues, and I don't.
The argument was more about whether it is appropriate to remove religion and personal beliefs from government/public schools, which I disagree with. Religion, spirituality, whatever you want to call it, is a core part of many people's lives, and because a minority object to something, that doesn't mean it is right, or for the common good of the people.