3. The proposed name of the complex hearkens back to the halcyon days of Islam and the Caliphate in Spain. In that sense, Muslims are said to be very wary of the use of the word 'crusade' in even its most benign context.
4. Islamists are not prone to compromise much on religious or political matters. While i can think of one instance wheere this is true, I don't know if it can be generalized.

What a hilarious juxtaposition! They have changed the name from "Cordoba House" to "Park 51" -- a compromise (pace your point 4) out of sensitivity to your point 3. Oh, the irony!

We also tried to use moral suasion to prevent blacks from integrating the schools in 1964. And it was just as moral as this moral suasion. Which is to say, not at all. Guilt and shame and fear are not moral suasion. And there is no moral reason not to build an Islamic Cultural Center (including prayer area) out of an old Burlington Coat Factory building in a very proletariat and not at all holy neighbourhood that happens to be 2 blocks from where the WTC once stood.