1) I don't think that people who disagree with it being built are racists. Since when does following the Islamic faith make you a part of a particular race? There are Islamic individuals of every race throughout the world, it's become a global religion with pockets of Islamic culture sprouting not just in Africa and the Middle East (which are two distinctly different racial demographics in some parts), but also in Asia and the United States (by immigration).
2) Having said that, I still think it's wrong to be against an entire religion categorically, and therefore oppose anything related to it. Each individual religious sect and political unit must be taken on its merits. There are Islamic factions which are completely peaceful, there are others which are unjustly militant, and others still who I am somewhat sympathetic to due to the circumstances of their existence and the cause they fight for. Lumping them all together with Al Qaede (which is one organization that I'm sure we can all agree is fits the label of terrorist) is not fair or justified.
3) I still think it might be in poor taste and counterproductive for a Mosque to built near ground zero. Whether their opinions are justified or not, a lot of people do feel resentment against the entire religion for what the hijackers did, and this move is not going to change that. If anything, it will make them resent the Islamic religion even more. If Muslims want to apologize for what extremists did, there are better ways to do so that won't push their agenda in a way that will face a violent backlash. With the way France recently banned headdresses for Muslim women in public, the last thing that social conservatives in America need added motivation and ammunition to get the same law passed here.
4) Regardless of what I said there, I think if there's an open piece of property and a private citizen owns the land, they have the right to choose to sell it for whatever purposes they wish. This doesn't mean I'm going to agree with it ultimately, I may think it's counterproductive, but I have to respect the right people have to do what they want with their property as long as it isn't breaking any laws. It strikes me as very odd that the very same conservatives who decry government encroachment on individual liberty are complaining about what is being done with private property here. If they want to build a church, you can disagree all you want, but applying pressure or outright force to stop that is downright hypocritical.
5) I would like to see some sort of Muslim organization reach out to Americans in a reconciliatory fashion; not because they have to apologize for what members of their religion did (because they don't, Al Qaede is in a completely different denomination really, it'd be like holding Baptists accountable for what the Pope does), but simply to distance themselves from that radical element.
Lets face it, ultimately the West has done quite a bit to anger the Muslim world, and the Muslim world has done quite a bit to anger the west. Until both sides will admit that they've made mistakes and we compromise, there will be no progress made towards peace between the two. Extremism in favor of either side is why the Israel-Palestine situation isn't anywhere closer to resolution all of these years later, and it's also why the Muslim religion isn't moderating itself. You have to meet people halfway, and most Western Countries--especially neo-conservatives in the United States--aren't willing to do so when it comes to the Muslim World.