On a Mosque at Ground Zero

I have been thinking about this whole Mosque at ground Zero thing. I wouldn't say I stand on any particular side of the debate, such that it is one, but the way I see it is as follows:
On the one side, yes, America values freedom of religion as a principle of the founding fathers, and allowing this Mosque to be built is really about standing up for this principle.
In addition to this, "At" Ground Zero really means two blocks away and is there really a spacial statute of limitations (i.e. what is the exact the radius around the site that should be considered "sacred ground"). Are there other businesses that should be "forbidden" from being constructed within this "sacred radius"?

On the flip side, are they putting this mosque up as a way of saying sorry? I have yet to see an official apology from the "higher ups" of the Muslim Religion (do they have a Pope or a Head Imam?) for the acts of their extremists, and an avowal that their actions were not condoned, and should not be considered to be approved by the majority of Muslims. The fact that there is such an uproar to this construction, should not be taken lightly by the Muslim community, and while I support their right to exist, I would think that they would opt for the ..."Oh, its gonna make people upset? well, then I will just move it somewhere else", rather than the "Hey deal with it, this is America and I can do what I want within the law, and this is legal...yeah, its a jerk thing to do, but its legal, so there" attitude that they are displaying. While the actual people involved in this probably do not intend this as a "slap in the face", there are those few fundamentalists that will see this as one step closer to their domination, almost a little victory.