I'm think the first two words are inappropriate however 'limited' is fine on a report card.
Perhaps your son isn't putting in much effort. I know children who are naturally talented with sport but their behaviour and lack of participation means that when in PE they are not achieving to their ability.
Same goes for the classroom. If the child is not behaving or completing work the teachers only have what they have demonstrated to go by.
In regards to the religious stuff - if it is part of the assessment then they should be marked accordingly. If they haven't comprehended the lessons or achieved results well it should be reported accordingly.
My DS1 is one of those children who are extremely bright, however his behaviour is questionable and he doesn't apply himself like he does at home. (He is at kindy but I can already see the difference between home/large group learning environment). As his parent I would want to know how he is going AT kindy/school. I already know what he is like at home and I think it'd be pointless to receive a report saying what a delight he is when I know he is quite trying.
I'm not sure if you're upset that he doesn't have the report you'd like for him, but at the end of the day it is just a document for you to know how he's traveling at school.