a better example where Islam coexists peacefully with the secular or other religion communities?
AKIron, may I humbly suggest my own neighbourhood as a good example of racial and religious harmony and tolerance.
I live in an area which must be at least 40% pakistani/bangladeshi 40% white caucasian and 20% others (not including students, cos they not human yet, just larva.)
People who live here are Muslim, Christian, Endotheist (like me) Atheist and even Zoroastrian(sp?)
No trouble at all on these streets. My neighbour is from Syria and we sit out on the street sipping Raki and drinking sweet tea in the summer. My boy runs with the pack of kids (well, he's only one so he don't get too far yet).
There's the occasional theft from car now and again, but by and large this is an idyllic neighbourhood (built up victorian terraced housing, ya know, like coronation street).
We are all polite and friendly to one another and help each other out when we can. In fact many of us got together recently to debate the war on terrorism/war on islam issue as local residents. The even was hosted by the local Islamic society and other groups. Nutcases on both sides as always, but the consensus seemd to be that there must be positive steps taken to ensure that this does not appear to be a war on Islam, even if it is not.
So my very humble suggestion is Sheffield [formerly the Socialist Republic of South Yorkshire]