I believe that religion should be separate from educational institutions. Unless the images explicitly relate to a class or topic at hand, I don't see any purpose for those images to be around as they would serve little purpose but to cause problems around the school, that's why I think the ban is fair.
The Flying Spaghetti Monster is only a reminder of how ridiculous religion is when trying to act credible. Anyone who wants to remove it needs to be told to take a chill pill and take a joke once in awhile. Don't be a drama queen and realize that it isn't real (just like God.)
If images of the Flying Spaghetti Monster need to be banned for causing religious offense, than so do images of Jesus, Buddha, Islamic imagery, and others which will inevitably cause offense in other people due to their own religious beliefs. This is simply ridiculous that anyone is even considering this.
It is an unfortunate development of society of late to create non-existent human rights, especially the right to never be offended. The images of a Flying Spaghetti Monster may offend some religious individuals, but that is not grounds for their subsequent suppression. A free society is one in which you may find yourself uncomfortable or facing something you find offensive, the alternative is a closed society on a path to oppression.
No, these images should not have been banned by this University for being religiously offensive, and I am sure that there is more behind this story than that. This image did not have anything to do with any religion, and to take it down saying it was is simply absurd.
I swear to whatever god you choose that religion is the most insecure fandom on the face of the earth, such drama whenever it's criticized. FSM is satire to point out how arbitrary and stupid laws protecting religion are, and I would say the people behind it at this London university proved it by getting His Noodly Appendages banned.