Sorry, but you're wrong on all counts (as is the judge). There is nothing wrong with a NON-TAXPAYER FUNDED group passing out anything at all. It's not the job of the school to be "gatekeeper" on ANY topic. If the kid's parents require them to toss whatever freebies they get, then THAT is the correct way to handle the problem. As long as the Bibles weren't purchased by tax dollars, then, as far as I'm concerned, it's perfectly OK to allow them to be distributed .
Get serious here and stop fixating on the Bible. Do you want planned parenthood (a non-taxpayer funded group) to pass out condoms, masturbation instructions, abortion literature? How about CAIR and Korans? How about NAMBLA passing out (use your imagination)? Of course the school is the gatekeeper. They have a legal responsibilities when children are entrusted to their care. Just because you want children reading Bibles doesn't mean you bend the rules JUST for your cause.