Can I just point out that nothing has been banned and no Muslims appear to have been involved in this blown out of all proportion farrago of innuendo. It may be pointed out before; if so, I apologise.
What actually happened was -
Daily Telegraph
Dozens of companies submitted entries to the annual BETT awards, led by Becta, which heaped praise on a robot with 67 different manoeuvres, a computer program which allows children to recreate Jackson Pollock paintings and a game helping pupils to learn French. But Newcastle-based publishers Shoo Fly were shocked when judges told them that their interactive 3D book was unsuitable for children.
In a feedback form, Becta told the company: "
Judges would not recommend this product to the Muslim community in particular."
I would not recommend Eastenders or Strictly Come Dancing in our house, but they aren't banned or offensive (OK, maybe they are offensive

).
Somehow
"not recommending" became, in the following newspapers -
Daily Telegraph -
story based on the Three Little Pigs has been rejected by a government quango in case it offends Muslims. (they also managed to sneak in a reference to Baa Baa Rainbow Sheep, just in case enough people weren't upset)
Daily Mail -
A story based on The Three Little Pigs has been rejected by a Government-backed awards event because it might offend Muslims... and builders (love the ... between Muslims and builders)
Daily Express -
A pop-up book based on a popular children's fairytale has been dismissed as "offensive to Muslims" by a Government agency.
I love the fact that putting a statement in quotation marks makes it ok to lie.
Definition of quotation marks from the dictionary -
"Either of a pair of punctuation marks used primarily to mark the beginning and end of a passage attributed to another and repeated word for word, but also to indicate meanings or glosses and to indicate the unusual or dubious status of a word"