I think we need to look at this in context .
The Bugle pub (where the incident took place) is a known meeting place for the BNP and other groups of that ilk .The people doing the burning are clearly of low intelligence as they have gotten themselves mixed up with race and religion ,are they protesting against Muslims ,terrorists or people from a different country that "don't look like what we do".People of this level of intelligence don't draw a distinction between muslims and people of a different colour they are different that is all they see ,as far as they are concerened all foriegners are muslims and terrorists .They also don't have the courage of their convictions hiding away behind a pub and posting anonymously on utube is not the best way to have a genuine protest .
Yes the police have every right to arrest these idiots imo they are quite clearly racist and trying to goad local muslims into trouble .Plus if the police look a bit deeper into their records they will probably find they are wanted for something or other