I'm sure there are many people who will not be offended but that's not really the point. It's about tolerating other people's beliefs. If that 'book' happened to be a copy of the Q'oran or the Torah I would personally think it was offensive. These are people's most sacred writings, their teachings and doctrine, their way of life.
As for racial hatred, the very definition of race is a difficult ones these days and is really just a social construct. There are many Jews who would consider themselves as a race of people just as there are Muslims who believe that too. Under our present laws, 'inciting racial hatred' covers a racial group and this has often covered religious creed.
However, my point from the beginning of this thread is that only the Bible COULD have been used in such an inflammatory way. The 'artist' and organisers know they would never get away with using any other sacred writings because they know they would incite hatred AND that they would in fact be prosecuted for inciting racial hatred under the Public Order Act. No, it wouldn't happen with the Bible but that's my point.
And Bobbie, if it comes down to either cutting off heads or ignoring it, we would be in an even worse state. Take the Bible out of it. In your country there are laws about desecrating or defacing your national flag in public. It's about respect and not inciting violence and hatred.