Apushtayid,
The situation you describe makes sense. The rule was universal for all regular meetings (i.e. would apply to a social club too), and more importantly, did not forbid praying in the space altogether, it simply required some safety changes be made. That is a classic least restrictive means.
In Jackson and elsewhere (many places in Rockland over the years), the rules were designed to stop shuls altogether and were not narrowly tailored to prevent the harm the Town was claiming the law was meant to prevent.