That ought to be good enough for anyone.
I pronounce Chile “Chi-Lay.”
I disillusioned someone one time when I pointed out that Leicester in England was actually pronounced “Lester.” His face visibly fell. I have no idea how he thought it was pronounced, but he’d pointed to the name written in some educational catalogue and said he’d always thought that sounded like a pretty cool place, and I said: “What, Lester??” That’s when his face fell.
References to the Islamic scriptures in English long predate contact with Urdu speakers. The earliest quote in the OED is from 1366 in the form Alkaron, and is said to have entered English from French. I would guess the French got it from contact with Moorish Spain.
Having entered the English language, the word bounced around in form and spelling quite a bit: alkaroun, 1386; alchoran and alcharon, both 1532 (in the same text); core, 1625; currawn, 1665. Koran first appears in 1735, qoran in 1787. Koran may have been the dominant form in the relatively recent past, but I doubt there was ever a time when it was the sole form of the word in use. It is possible, of course, that contact with Urdu speakers in the eighteenth and ninenteenth centuries partly accounts for the predominance of K-forms of the word from that time.
The K-Q transition is not unique to the word “Koran”. From the mid-20th century on, ‘Q’ is used with increasing consistency in the scholarly transliteration of the relevant Arabic (and Hebrew) letter, and this has had an effect on English loan-words from Arabic and Hebrew. For longer established words this has lead to the previously dominant form, e.g. Koran, being replaced with a Q-form. For newer words, only the Q-form is familiar; how many people would identify Katar as the name of a Gulf emirate?
I think (based on watching BBC news) that Brits pronounce it “Chil-A,” which is fine if that is the natural pronunciation there. I was focusing my scorn on Americans in my region for whom the natural pronunciation is “Chilly” calling it “Chee-Lay” in order to be more authentic or something.
Brits would assert that it’s ‘Chilly’, and you’re simply picking up on the greater tendency to swallow final syllables, as with Birming-ham, AL vs. Birming’m, UK.
OK, so that means that anyone in the UK or the US calling it “Chee-Lay” is a pretentious twit. 
Spot on 
So then how would you say it?
If you want the transliteration in the same standard ALA-LC system used for “Qur’an” and “Muslim”, it’s “Mu`ammar al-Qadhdhafi”. The letters in Arabic script, with their vowel/diacritical markings, are:
meem with damma, `ayin with fatha, meem with shadda, raa’
definite article “al”: alif, laam
qaaf with fatha, dhaal with shadda, alif, faa’, yaa’
Or lives where spoken Spanish is as common as English. This includes a couple of my former neighborhoods.
I hear what you’re saying Rotewurm, but are you really asking why Nip (ponese) and Jap (anese) are offensive terms for the Japanese?
…But yet to my English ear Nip(ponese) is more offensive than Jap(anese). It’s cultural. We dropped the Bomb on one, and lost the Auto Wars to another… in my particular case I also lost a Grandpa in Saipan and me and many of my family belonged to the UAW.
However, I as the fourth generation, studied Japanese and have referred to neither in angry terms. Feel pretty bad about that Nuclear thing we unleashed on the world.
Fortunately, I’m in Thailand.