I think it's great that the LDS uses Scouting as their youth program.
From what I've heard, Scouting and LDS have a 'special' symbiotic relationship that allows LDS churches in small rural towns, like mine, to waive minimum membership numbers so they can still use the Scouting program as their youth program. I don't know if this is a local council policy, or if it is sanctioned by National, but the same waiver should be available to other religious COs that use Scouting for their youth program.
On the other hand, I don't think a religious CO should segregate Scout membership according to the members specific faith.
I've had a few 'heated' discussions with other adult leaders in re: to Scoutings policies on religion. Specifically...can a 'non-Christian' faith such as Pagan/New Age/Wiccan be allowed? I say 'Yes', since Scouting requires a "Duty to God", but does not say what "God", whether it's Christ, Allah, Budda, or 'Ralph the God of Lettuce'. But that may be a whole other new thread.