This building was hit by some of the debris including the landing gear. So I would say that it is not "near" ground zero, it "is" ground zero.
Which is the point, from the muslim's point of view. It will be a great place for them to commemorate 911 in their own way. And the rest of the thirteen stories will be effectively a Muslim Brotherhood embassy.
Are we denying someone their property rights? Maybe. If you've been involved trying to get permission to build a church in an urban setting you're aware that they will make your life very difficult as they, the planners and city councilmen, worry about traffic patterns and best use of property, and generally make it very difficult to build a church of any size. Just tell them you're going to build a 13 story church and see them go apoplectic.
But a mosque, no problem. A mosque paid for with foreign funds, even better. And the State Department will pay for your fundraising trip.
..and you bring up another point.. with all of Fraud Paul's talk of 'non-interventionism(sic)', he sure defends foreign entities from intervening with us.