I guess that doesn't resonate as much with me. Your point is totally fair, and maybe people would like your idea a lot more. Despite my atheism, I'm much more intrigued about a game that's more from a particular point of view and I just don't have a problem with characters that are religious. A more culturally homogenous game might be less appealing to me. I'm sure it could be done right, though. The Mormon aspect, I thought, would give such a game a lot of interesting gameplay scenarios out-of-the-box that wouldn't be as easy to explain in a more generic game.
FWIW: I think most members of the LDS church have a good sense of humor for things like this done in good taste, even if they're not 100% representative of their beliefs.
source: am one myself. This is true for the other members around me as well (friends, family, etc)
Thanks for the feedback. :)