Jokes aside, tolerance is a two way street. People with a cultural background different than ours need to accept that they need to embrace the values of a secular tolerant society if they settle here. Hence saying 'Merry Christmas' to anybody, regardless of background, should not be an issue. Likewise, if someone chooses to practice a religion different from the majority of their neighbours (in the Eastern suburbs of Sydney, that might be Judaism), as long as they are causing no harm, we should tolerate that.
Though slightly off topic, I personally think that a mosque should be allowed to be built near 'ground zero'. Freedom of religion is a constitutional right of US citizens. The United Stated was founded on being a secular society with freedom of religion. Stopping the mosque because the towers were destroyed by Moslems is as logical as stopping a Catholic church being built next to the Oklahoma City bomb site because Timothy McVeigh used to be a practising Catholic (yes I know he stated he was agnostic later in his life).
My personal view is that polarising issues instead of being tolerant tends to lead to more radical positions being taken by each side of a debate.