If you happen to live in a secular society, such as France, you may believe that secularism provides a framework for democracy where:
1. There is a separation of state and religion
2. There is freedom to practice one's faith (theist, agnostic or atheist), without harming others, and to change faith if one so wishes.
3. There is equal treatment of faiths and ideologies by the state, so long as a citizen acts within the law.
Does the lampooning and portrayal of Muhammad amount to blasphemy, and is this harmful to Islam/Muslims?
Well, the hypocrisy is when Chomsky spoke against the Iraqi invasion and some issues in Israel there were many who made big issue with "anti semitism". Ah the drama. But see, insulting Muhammed is perfectly fine and is promoted. Very nice.
Thats hypocrisy.
Yet, Muslims must grow up really. Because it is their reaction that people are triggering. Thats the fuel to the fire. So Muslims must grow up and just shrug them off as a silly attempt.
Once there was a stage play done by a group of young men in an Arab country that is a bit derogatory towards Christianity. Now the Christians used the laws of the Arab country to arrest those guys for blasphemy. They made a big issue. But no no, Muhammed is perfect fine to be insulted. Very nicely done.
In my opinion this government level involvement in this matter is a political strategy. Nothing more, nothing less. But, that's my opinion so I could be wrong.
To answer your last question, I dont think there is any harm in insulting the prophet to Islam or Muslims. None whatsoever. Just that it hurts their feelings. If someone insulted my wife, mom or dad, I will get pissed off mate. So for most Muslims Muhammed has been closer than their father. So insulting him is worse than insulting their own dad. So it hurts their feelings. It doesnt harm them or the theology. In fact, studies have shown that these events promote Islam.
Lets take a religious study course on the theology of Islam. One single class had about 10 students but with immediate effect the venue had to be changed due to social distancing issues to accommodate triple that number of students after the French connection with the Charlie Hebdo episode. Instant phenomena.
Peace.