Replace Islam with Judaism and it becomes less clear. Hatred towards a religious minority can get really fucking bad and should be stamped out. But also hatred towards your own oppressors is always justified.
Burning a religious text as a public demonstration isn’t a mild condemnation. It doesn’t fall within the realm of civil discourse.
So yeah I think it should be allowed unless Dutch people start actively targeting Muslims. At which point the right to such demonstrations may need reconsideration.