In fairness, SickOfItAll, I believe that if a Jewish schoolteacher in the U.S. burned a New Testament or Koran in front of students, American Jews would the the first to condemn it and they would do so forcefully. IMHO, it is no coincidence that the complaining Israeli parent in this story was an American Jew who immigrated to Israel.
For me, the point of this story is that Israel does not really share the values of the U.S., as most Americans believe. I do not necessarily criticize Israel for this, because Israel is in a war enviornment. However, I do think that most Americans -- including most Jewish Americans -- have a very inaccurate idea of what what actually goes on over there.