I do think that the march seems in extremely poor taste. But I can't help comparing it to Fred Phelps and his Westboro Baptist Church, protesting at soldier's funerals.
As reprehensible as nearly every American finds this behavior, there's no way to stop them doing it. The only tactics have been to simply ignore them, or to organize counter-protests. For example, I recall a couple of instances where groups of veterans on motorcycles have show up at funerals and basically made themselves a human shield, and kept their motors running to drown out the protesters, so as to somewhat spare the family.
While it's all well and good to ban the march, I think it would say a lot more if the community, including other Muslims, arranged a peaceful counter-protest.