Okay. I definitely get where everyone is coming from here. We all want to protect kids. I'm not sure this ruling is in the wrong though.
Here's why. We demonize pedophilia to the point that people would kill someone that is attracted to children. I'm making a specific point here to NOT include child molesters. That's a separate but very related issue. If we took the time to address the mental health issues that caused them to be attracted to children in the first place (eg, molested as children themselves, some other issue that therapy could address, etc), maybe we could stop them from going so far with their problem and actually save kids before they were abused.
Since they really don't have anyone to talk to ever, maybe a priest could curb their behavior and act as a counselor to stop further abuse of children. If left unaddressed, maybe the molester would continue with many more victims, and the priest could stop them at 1. But if they no longer felt they could talk to a priest, then they continue.
Basically, as a country we should be doing MUCH better to stop pedophiles from dealing with their issues alone and help prevent them from actually molesting children. Failing that (since we are failing that), why are we trying to take away the next level of therapy for them? It makes no sense to continue to push them into a lonely corner and expect them to do differently. If the priests' silence allows them to keep the molester from touching more kids, that's a much better outcome overall.