I believe it is. I have heard sermons to the same effect as the post you are making. One pointed to King David's use of Goliath's sword as an example of "God taking what is Satan's and using it for good". The purpose of that sermon was mainly to justify using Contemporary styles of music in worship. Not a huge issue to me, personally, but the premis can be misleading.
I would assume you would agree with me that it would not be appropriate to take a pagan temple, remove the inscription, and carve a new one that said that the image is Jesus... then continue offering whatever sacrifices were offered to the Idol, and practicing whatever rituals were performed, only now, instead of being done in the name of the pagan god, they are done in the name of Jesus.
If there were a church who were so blatantly idolatrous, how would you answer them if they used the same argument?
Catholics don't do anything remotely like that, ridiculous claims in Jack Chick tracts notwithstanding.
However ... there's a book you ought to read, called "Daily Life in Ancient Israel," by Fr. Roland deVaux, O.P. Don't let the fact that deVaux is a Dominican priest throw you. The book is considered to be one of the classic archaeological and anthropological texts on its topic.
One of the things that may surprise you is just how externally similar ancient Israelite religion -- as specified in Exodus and Leviticus, not as later corrupted -- was to Canaanite paganism.
Maybe God doesn't approach this thing the way you do.