Should a Catholic school have a Muslim prayer room?

The move by one Ontario Catholic school to have a Muslim prayer room is causing a lot of controversy. Many Ontario Catholics are concerned about how recent government decisions are diluting the ability of Catholic schools to be authentic to their Catholic values. The existence of a Muslim prayer room is seen as one more manifestation of the dilution of Catholic values in some Catholic schools. (Here’s an interview with Michael Coren on the subject:
The wider context of this issue is important - Ontario does not allow alternative or charter schools. There are no publically funded Muslim, Jewish, or Protestant Christian schools; therefore, parents who want their children educated in a traditional values-oriented environment often send their children to Catholic schools. This is potentially the best option for them, but it creates a new challenge for Catholic schools. How do they accommodate non-Catholics in their school system and respect parental authority, while also being authentic to their Catholic values.
Our answer to this question of a Muslim prayer room in a Catholic school would be to allow more school choice - for Catholics, for Muslims, and for everyone else. Catholic schools should be allowed to do what makes the most sense for their community, and Muslims should enjoy the same rights that Catholics do to have alternative publically-funded education. Some in Ontario have objected to allowing Muslim schools because they object to things that might be taught there - but Muslim private schools already exist, so encouraging greater engagement between them and the public system must be a good thing.
This controversy speaks to a larger issue - that the lack of choice in Ontario leads to unnecessary conflicts for and between faiths which could quite easily be resolved.