I am completely against censoring art, regardless of who it offends.
I also kind of like that piece of art. Painting a nude female body on an Islamic prayer mat is a fairly interesting idea. You have the beauty of a prayer mat, and you have the beauty of the female body. Yet seeing them together brings a feeling of taboo, instead of anything that you would feel seeing them separately. The Islamic culture is full of beauty, I think they have some of the most beautiful art and architecture in the world. Yet the culture tends to reject, conceal, or create a taboo around the beauty of the human body?
I like it, they should have kept it. I mean it's not exactly subtle, but nobody should be apologizing for art. Some people will think it's dumb, some will think it's great, some will be offended. That's kind of the point.