Are we on a path towards government approved mosques?

Hazel Blears, minister for Communities and Local Government today announced 70m pounds to help Muslim communities tackle extremism and radicalisation. They will set up websites, 'help' Imams, discuss identity and go into mosques to discuss citizenship and other nice fluffy stuff approved by the government as its preferred form of Islam. Is it a slippery slope to government approved mosques, or have the media headlines distorted the truth to fan the flames of mistrust?