...though looking at that particular passage it looks more like it's suposed to protect people in the government from prosicution based on there proclamation of faith, as in if you get aressted and the cop says "you God damned basturd!" you wouldn't be able to use that as some sort of defence.
though it also says "an element of Federal, State, or local government" so I'm thinking that's gona get the 'whole nativity in town hall' treatment, that's what is going to be sited as the reason for makeing this, but I think this is defenately a first step twards theocracy, but I don't think it would do it all in one shot.
anyway, like I said, get'n my gun.