Mod parent up! Not sure who thinks the above is a troll, but this is a clear point to discuss.
The Libyan authorities appear to be making a stand that this website, which as it is registered as a ".ly" website, is clearly within their scope to control (both from a technical and common sense perspective), violates the legal and ethical guidelines which their country is guided by.
While Sharia Law may be based on Islamic beliefs, the Libyan government is not run by clerics. The term people should be looking for is "separation of church and state", not "remove religion from government". There are two separate things.
So should we remove laws against murder in the West because "thou shall not kill" is based in a Judeo-Christian religion (gasp).
Most ethical frameworks around the world have their foundations in a set of religious beliefs. Some would argue that religions are created because of a need for an ethic framework. And any community, to be effective, needs to agree on an ethical framework to be effective.
Also note that the Libyan authorities are not on a typical true "nut-job" rant of attempting to impose -their- beliefs on the rest of the world. They are controlling only what is theirs to control. Now if they hosted a root nameserver and poisoned it to send the rest of the world's "unapproved by Libya" links to a black hole, that'd be a different thing.