Easter bunnies don’t really have anything to do with Easter, so maybe this is a good thing. It’s almost the opposite of controversies in which a Christmas event is renamed a “Winter Holiday.” In the latter case, a religious holiday is being transformed into a secular holiday, whereas in this case they are disassociating a secular add-on from a religious celebration that it has nothing to do with in the first place.
It’s NEVER a good thing to placate Muslims.
I agree that Easter is a religous celebration - for some. Christians, Druids, Pagans and more. But just as Christmas also has strong secular traditions, so does Easter.
Leave the Easter Bunny alone.