If there was a Nativity there as well, wouldn't #2 apply as well?
I'm an atheist and I don't really care about Christmas displays on government property. Like it or not we are a predominantly Christian nation and so long as the same space is generally made avaialable to other groups who'd like a similar opportunity then I don't care.
That said, specifically targeting a Christmas display for a counter-display is a dick move as much as I agree with the sentiment.
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