Food for thought ... Public Property is just that, public & is open to everyone with all viewpoints whether you agree with them or not. If a sign or display openly promotes violence, threats or hate, then I can see it being removed.
IMO, this sign was just as a reminder about how the real reason behind Christmas. You can believe in it or not, that is your choice. The sign wasn't put up by government, so I don't view it as being sponsored or supported by them.
By taking the sign down, wasn't free speech & freedom of religion being denied? Government sponsored religion tells you who to worship, how to worship & how much of your taxes will go to support that government religion. It will also have consequences if you don't do as they say.
And I agree
@chic that actions like this looks more like an attack on a culture because of people who either don't like it or have another end goal in mind (whatever that may be).
Just my thoughts.