What Lord Ben said. I've watched the video, and after watching it, yes it is meant to be offensive, but it isn't any more harmful than the parodies of christianity and any other religion that exist in countless numbers, but hardly any of those videos could be seen as hate speech. If they made a movie about Mohammad being decapitated or something else incredibly horrible, then maybe there'd be some sort of grounds for hate speech, but this is harmless.
On free speech, yes I, and any other American in this thread are well aware of hate speech and the laws that pertain to them in the US Sav. As Lord Ben has stated, we simply value it more than censorship, the idiots that made the video will have to deal with the social consequences of their actions but if we are going to claim their idiocy is hate speech, then we're going to have to place charges on millions of people who have more or less done the same thing.