Everybody needs their space. A space to celebrate what one believes. Tax-payer monies funding specific religious forms of expression, this could be a problem, but individuals, celebrating what they believe - we must accept it. We don't have to like it, or agree with it, but it must be allowed to exist. But, in the end, the State should not sponsor it.
The 'under God' clause in the Pledge - I find the arguments on both sides are disingenuous. The pledge, with or without the controversial 'under God' is an expression of devotion, i.e. a religious expression. The founding fathers did not create it, nor did they envision citizens, under compulsion, reciting such a creed. The Pledge was created in 1892 by a Baptist minister by the name of Francis Bellamy. He was a Christian Socialist. With respect to the argument of prayer in schools - the Pledge is a prayer - thus, there is prayer in schools.
I appreciate Newt's sentiments, we have a crisis in this regard, how it will work itself out remains to be seen.