I'm not religeous at all, nor do I have any relevant views on sexuality or sexual practices, but I can see the Pope's dilema here, so I'm going to play devils advocate...
If, as the Pope clearly believes, that homosexual practices are a sin, then how can he appoint someone who admits to carrying out those acts to an official capacity in the Catholic Church?
If he is made to do that by law then the authority of whatever doctrine they believe in is undermined, he is charged with upholding and protecting these core beliefs.
So there's an interesting conflict coming to a head that's been on the cards for years, if the Catholic Church really really believes it is a sin then how can it just go, oh all right then, and capitulate, either way will invariable cause a schism that will probably damage the church anyway.
If they are forced in this country then presumably in countries where it is ok to descriminate against homosexuals they will continue to do so, so you'll have an organisation, wholly built on faith and belief, that operates in a conflicting manner, it's clearly untenable.
