I go to Reddit a lot, and this topic got pulled off a board called "Not The Onion"-a board for real world headlines so freakin' ridiculous that you can't believe it's not satirical. Personally I don't know how reliable the London Evening Standard is, but I'm just going to assume it's legit until evidence is presented otherwise (and I'll delete the topic).
One thing I want to bring up: "The guidance was condemned by Muslim Labour MP Khalid Mhamood."
First thought-I find it hilarious that the people you're so worried about offending are the people who are telling you this is the stupidest thing they've ever seen.
Second thought-I would say this is the most offensive thing they could have done. The UK is trying to tell Muslims (and Jews) what they should be offended by. Which is stupid.
I can understand that Oxford University Press (OUP) has a wide reach and they don't want to offend anyone, but calling attention to the fact that you're trying not to offend people just leaves people confused and possibly more offended. Granted, I'm young and I don't know anything (only 21), so maybe I drew the wrong conclusion. Prove me wrong, please-or prove me right. Either way, I wanna see what you have to say.