Islam gets more obnoxious. On one hand, I do understand their sensitivies, particularly since they personally identify with Islam, rather than merely accepting the better parts of the Quran. On the other hand, I think that this sort of proposal will backlash into increased resentment of fundamentalist Islam, or, by association, of Islam.
I do not for one second believe that Islamic nations will enact laws that prevent militant muslims from uttering hate-speech and threats against other religions and nations.
Religion is a menace! Theocracies are a bigger menace.