Well, whether or not freedom to insult is a Western value, Islam has nothing to do with it. It lays emphasis on its exact opposite: the freedom from insult.
It values human dignity, decency, and harmony in the society. The freedom of religion it ensures includes freedom from insults. While it does not shy away from academic discussion of its beliefs and showing the falsehood of non-Islamic beliefs, it makes sure that the discussion remains civil. In those discussions it wants to engage the intellect of its opponents; in contrast those who itch to insult their opponents are interested in satisfying their vulgar emotions.
Thus while its most important battle is against false gods it asks its followers to refrain from reviling them. (Qur’an, Al-anam, 6:108). It also reminds them to stay away from harsh speech. “Allah loves not the utterance of harsh speech save by one who has been wronged.” (Qur’an, Al-Nisa, 4:148). Prophet Muhammad, Sall-Allahu alayhi wa sallam, who is being reviled by the scum of the world, taught Muslims to never let the low moral standards of their adversaries dictate theirs.
As a result of these teachings Muslims can never even imagine insulting any Prophet --- from Adam to Moses to Jesus to Muhammad, peace be upon them all. Even when they ruled the world, Muslims treated the religious leaders of non-Muslim also with respect – even during battles. In the Baghdad court Jewish and Christian scholars engaged in open discussions with the Muslim savants.
Needless to say they had not been attracted by the freedom to insult but its exact opposite. Freedom from insult is a fundamental value that assures peace and harmony. It leads to healthy societies. And Muslims are very proud of their impeccable record here.
What is true of a home or a village is also true of the world as it has become a global village. Now, more than ever before, the world needs the harmony and tolerance that can only be assured by the freedom from insults.
From Khalid Baig's article in Al balagh. More Here.