It implies that all those religions point to the same god--OR, that all religions are OK, WHICHEVER god they point to. The problem can be expressed either way.
But the event isn't quite that simple. Of all the Christian leaders present, Benecke (if I spelled his name right) was the only one to pray out loud in the name of Jesus Christ. Which caused a lot of discomfort from the others on the podium with him. Also, he got permission to participate from his district president before hand.
It was Atlantic District President Benke, and he received permission from LCMS Synodical President Kieschnick. But the fact that he received permission from Kieschnick does not make it right.
Also, Benke was not the only one to mention Jesus. And nobody on the podium showed any "discomfort" with Benke afterwards; instead, they applauded and hugged him. Mentioning Jesus is OK, as long as you do not make Jesus the ONLY way, thus indicating that the other religions are wrong.
Mentioning Jesus does not make it right. For Benke did not make clear who Jesus is or what Jesus did. Benke said or did nothing to make clear that Jesus Christ, the only Son of God, is the only Savior from sin, and that all other roads are dead ends. In other words, Benke fed the notion prevalent that day and in our culture that Jesus is a fine option for Christians, but there are other ways that work for other people. It's the smorgasbord-of-spiriutality approach that these interfaith prayer services teach.
The "inside" part of it is that the reason it became such a charged issue was that those who blasted him for the event did so partially because of a recent Synod election.
I blasted Benke and Kieschnick because what they did was a disgrace to the gospel of Jesus Christ and it confirmed unbelievers in their false beliefs. I blasted--and still blast--Benke and Kieschnick because they covered up what they did with misinformation about what really happened. I blasted Benke and Kieschnick because Benke violated his 1998 public apology and assurance--required of him when the LCMS had a better synodical president--never to participate in interfaith prayer services again.
Personally, I am not that comfortable with a pastor praying with other religions, but in the way he did it he at least prayed to Jesus. So it was not the best thing, but not a huge deal.
It was, and still is, a huge deal. Kieschnick and his cohorts have used this situation to change the Synod.