Is anti-Muslim bigotry becoming accepted in mainstream America?

Reverse Vampyr recently posted a quote from the Face of Muhammed blog that I believe is bigoted, hate mongering, and promotes religious intolerance. Here's the quote:

It is suddenly coming to our attention that Islam is not, cannot, and will not be integrated or assimilated to the values of freedom and democracy. Islam is not only a religion; it is a totalitarian and expansionistic political ideology.

Am I over reacting to this?