Notre Dame Sells Its Relgious Soul

You write like a traditional pre-Vatican II Catholic. (That's a compliment)

The Church is not organized monolithically. It's a number of organizations, all of which have some form of power over others. Even the laity, in stubborn obstinacy can overrule the bishops (see Arian heresy, 4th century). What Notre Dame did was wrong but unless you understand how the church is both formally and informally organized, you will aim at the wrong people.

You have aimed at the wrong people by implying an authority to Notre Dame that it does not have and does not even claim to have. There was an unprecedented list of protesting bishops who stated that what Notre Dame did was wrong. For a large number of Catholics, Notre Dame's desirability has significantly dropped and it will likely have donations difficulties out of this act for years to come.

Ultimately, if they do not reform, Notre Dame will lose its ability to call itself catholic, all priests associated with the University will depart, and it will fully secularize. This sort of punishment only happens after a long pattern of abuse. Notre Dame is on notice that the process has started. Hopefully they will repent and everything will go back to normal.

I have no argument with your analysis, if it comes true. I would have hoped that all Catholic association with the School would end with this decision. That may be asking too much; but it would be the proper response. Sometimes I wonder if secular people do not have more principles that they stand by than religious ones.
Your word "ultimately" does bother me. In the sense that too often I have seen that become "long past history to be conveniently forgotten."