Most of the people here weren't around for the early 80's, when that mentality was rampant. KISS certainly got people pretty spooked during the 70's. Then you had WASP, Twisted Sister and Motley Crue who were just looking to scare the shit out of old people, and it got even worse. Strangely, Iron Maiden topped the list of goat-people back then. The fact that they'd sing NotB so proudly made them easy targets. Honestly, I kind of miss that mentality, back when rock was actually threatening. Music that used to prompt tons of bible thumpers to go out and picket concerts gets played as muzak at the local grocery store now.
As for the religious aspect of it, during my bid at Christian maniac school, they harped on that pretty hard. Any lyric that could be even remotely construed as evil (Imagine there's no Heaven, it's easy if you try) got you into the record burning category. If there wasn't anything actually questionable in your lyrics, then your problem was that you weren't glorifying God like you were supposed to. They threw around a horribly out of context bit of Revelations to slam anything secular but otherwise unobjectionable. Lastly, even if you wrote pro-Jesus lyrics, Stryper was often mentioned, you were still evil because you were using music to convey your message that was far too suggestive and sexualized. Apparently loud, bass heavy music naturally makes young girls do naughty things, although I could never ascertain why that was considered a bad thing. Those people were just weird like that.