Yes, he probably did ask for the whole venue to be meat free, as he does wherever he plays. They reached a compromise whereby it wouldn't be served backstage but people had the option to go and get a burger from the main venue, presumably a short walk away. I really don't see the big deal. Some people just love to get angry at Morrissey, it's their favourite occupation.
Exactly.
If you're in music industry in UK it's well known fact that Morrissey is a veg who requests meat free environment when he's playing.
The Rascals used this opportunity for their publicity, sad people indeed.