Would Toledo grant a permit to the KKK?
Exceptions established by the courts to the First Amendment protections include the following: Defamation; Causing panic; Fighting words; Incitement to crime; Sedition; Obscenity.
Fighting words: In the famous case of Chaplinsky v. New Hampshire, the U.S. Supreme Court held that the First Amendment does not protect "fighting words -- those which by their very utterance inflict injury or tend to incite an immediate breach of the peace." (315 U.S. 568, 572 [1942])
Note that the harm involved is physical harm caused by someone else who was provoked by the speaker whose speech is being suppressed. The fact that someone else flies into a rage and causes physical harm results in justifying suppression of speech by another person.
It is simply not a cut-and-dried issue.