I am fine with Christian nativity scenes- as long as they are not on public property
So in a Southern town with 95% Christians they should be prohibited from putting a nativity scene in the town square?
Unless they want to open up the town square to any and all comers, for any displays, religious or not.
I suspect that they wouldn't want the "Gay Nativity" but without discriminating on the basis of religion, how would they deny it if they allow any other nativity?
Why would they have to do that?
How could they prevent it? No establishment of religion means that no religion can be given any preference- Chrisitians don't get special "Religion of America" status.
Personally I think that banning religious displays on public grounds is better for those who are religious- because if you are a Christian do you really want every religion under the sun shown on the public square- or even worse- the government deciding which religion is good enough for the public square?