> Is Islam at all compatible with secular values in the same country?

Yes it is. I don't know about Shariah law, but all muslims I know are just like anybody else. I think you're conflating some zealots with a large group of people who are mostly secular (just like lots of christians don't do anything christian besides celebrating Christmas and the occasional funeral at the church). The real issue here is some school administrators bending over because a fanatic complained.