I'm afraid it's your argument that lacks merit; requiring a "duty to god" is a religious requirement, and public schools can't enforce this.
And yes, the BSA practices religious discrimination. They kicked out the Randall twins in California. They kicked Rick Sherman out of an Explorers post run by the municipal police department (back when the BSA expected government-run Explorer posts to discriminate; they don't now, but it wasn't the BSA's idea).
Like I've said, you can continue to ignore the problem by pretending it doesn't exist, but 1) according to the BSA itself, over 10,000 schools charter BSA units, and 2) requiring a "duty to god" is a religious requirement that public schools can't enforce.
If the BSA addresses this problem, they'd announce a withdrawl to give units some time to find new chartering partners. However, I'll assume they (and most of you, apparently) will deny any problem exists until the Illinois ACLU lawsuit cuts off all government charters at a stroke and people are left unprepared.
You DO know about the ACLU lawsuit, don't you? The Illinois ACLU was responsible for Chicago dropping 28 BSA units about 3 years ago, and they filed a lawsuit to do the same to all federal and Illinois state charters 2 years ago.