Am I overreacting?

So a Facebook friend (not a real-life friend, in this case) posted this as her status update:

Regarding the mosque near ground zero, I say let them build it. Then across the street we should put a topless bar called “You Mecca Me Hot”. Next to that, a gay bar called “The Turban Cowboy”, and next to that, a pork-rib restaurant called “Iraq o’ Ribs”? Then a check cashing center called “Iran out of money” Lets see……… who’s really tolerant!

I found this to be in incredibly poor taste, and said so. They responded by saying I needed to lighten up; that it’s a joke, ha ha ha ha ha.