From the quote, I guess she is a strict constitutionalist. Awesome.
The establishment clause states that government shall not establish a religion. If anyone knows the history of the Church of England, they will understand the reasoning behind that clause. If I were a judge, I would challenge anyone bringing a lawsuit which is aimed at preventing religious displays to explain exactly how those displays forced them to become religious. If they cannot make the case that seeing a display on public land is equivalent to forcing them to attend a state directed religious service every Sunday, they have no case.
Congress shall make no law respecting (regarding) an establishment of religion (an establishment of bowling), or prohibiting the free exercise thereof;
Here is a link to an interesting short article that discusses the states and their established religions during and after the adoption of the BoR.