I can hardly believe how this is being portrayed in some of the press. Chec this out from the international edition of the New York Times:
VATICAN CITY: The Vatican, bowing to the growing furor over Pope Benedict XVI’s decision to accept a return to the church of a prelate who denied the Holocaust, made a dramatic turnaround Wednesday and demanded the bishop recant.
What is in fact happening is that, while from Day One the Pope and the Holy See have been very clear that the lifting of the excommunications is in no way an exhoneration of Bishop Williams or an approval of his views, the media is finally getting it. Only their infinite pride of the journalists reporting on this story will not allow them to admit that it was their mistake in the first place.