People in the West get agitated about art and religion all the time. Just think of Andres Serrano's 'Piss Christ' in which he dunked a crucifix in his own urine, took a photo, and declared it modern art. His work was partly funded by a US government agency, and American Christians were outraged over it. Here's a link to the controversy:

http://en.wikipedia.org/wiki/Piss_Christ

Of course they did not burn flags and riot. And that is my second point. Protest needs to be in proportion to the crime. Murdering innocent people in Afghanistan because some idiot in Florida blasphemed is really stupid. Burning another nation's flag because one person in his probable ignorance offended you is also (albeit no equally because no one was murdered) stupid. I think that is nic's point about being civilized, and I agree with that part.

Having said that, the designer should apologize for the insensitivity and educate himself to avoid repeating the mistake. If he did it purposefully and knowingly, then I support his right of free expression.