several groups of protestants in particular have a hard-on for it. Probably at least in part because of some interpretations that suited the patron, but also because of those language issues.

It should be required for any English literature student, and I'd also say that Pen of Iron by Robert Alter should be assigned as a companion for anyone studying American literature. The King James version is easily the most influential English language work of all time even though its influence got off to a slow start (the first edition's spelling and punctuation were crucified by critics), and the release of the 1769 update is maybe the biggest single watershed moment in the history of the language. A translation can be a work of literature of course, but the King James Bible is also more of an original work than most translations (with a pro-monarchy slant). Not only do we use hundreds of idioms that are lifted directly from the text, but in reading it you will notice obvious and subtle references in everything from Moby-Dick to The Silence of the Lambs.

Richard Dawkins, whom I've never seen accused of pro-religious bias, wrote an editorial all but railing against not forcing absolutely all students to read it. Largely because of its literary value, but also because he believed that critical study of the Bible itself would loosen its grip on social mores.