To me the essential questions are:
1. Can a university group/club reasonably set membership requirements? If not, what's to stop the Carnivore Club for taking over the student chapter of PETA?
2. Should universities take fees from all students to fund these clubs?
3. How should universities decide which organizations to fund, and which not to?
4. Is withholding funds to this Christian organization because of its religious views a 1st Amendment issue?
Because of all these questions, I agree with this comment posted at the above link:
Its time to stop taking funds coercively from students to fund all these groups. Let the Gay-Lesbian-Transgendered Law Students, the Palestian Law Students, the PETA students and the Christian groups equally find funds among their supporters. Survival of the fittest.