I had "Christianity" when I was in public school, it was later changed to "Religion"
Though I do not believe in the divine I had no problem with learning about religion. I found it interesting and educating. And I was even lucky to have a teacher who was objective about the various religions, no biased comments, not one!
Basically I have no problem with children learning about religion in school. In fact I think it should be compulsory, but the education should not be based on religion.