This right in this particular case does not exist in Germany, because there are a few exceptions to freedom of speech, and this violation of our law is called
http://en.wikipedia.org/wiki/Volksverhetzung
Volksverhetzung (“incitement of popular hatred”) which is a concept in German criminal law that bans the incitement of hatred against a segment of the population. It often applies in, though it is not limited to, trials relating to Holocaust denial in Germany. The German penal code (Strafgesetzbuch) establishes that someone is guilty of Volksverhetzung if the person in a manner that is capable of disturbing the public peace:
– incites hatred against segments of the population or calls for violent or arbitrary measures against them; or
– assaults the human dignity of others by insulting, maliciously maligning, or defaming segments of the population
American law is different, so Terry Jones was legally entitled to carry out his irresponsible act. To answer your question: He should have chosen not to exercise his right. He also put himself in great danger.
Sooner or later Terry Jones will most likely be killed by Islamist terrorists. The question is, will the police or FBI be able to protect him?