The whole point is just a way of not revering the prophet as a god or idol. Like Catholic saints are borderline in their focus on the religiosity of that person but the church chose to ignore it because it was popular and helped them spread their religion.
But the implication is that it only matters for people who are already Muslim. It doesn’t make a difference what outsiders do.
You don’t think a sovereign country can have a state religion if everyone in the country is part of that religion and wants it that way?