in the original post, the state didn't censor the belief system, they moved it to a proper venue.
Deciding what is or is not appropriate to be expressed verbally or visually while in a
public venue is a form of censorship. Just because it was moved rather than trashed doesn't mean the display was any less inhibited.
This isn't a matter of separating the church and the state--it's not as if the state is adopting a religious tradition by tolerating these displays. It's a matter of free speech.