Sounds good to me. When there has been a manifest collapse in the Orthodoxy or Orthopraxy of local churches, this is what the Papacy is for: to intervene, to investigate, to judge, to depose, to condemn, to set up new structures, to call to repentance. It is for this that the See of Peter has a jurisdiction ordinary, episcopal, and immediate over each of the faithful both clerical and lay. I only wish that Rome had done something like this sooner. And in a funny sort of way, this move is rather like Anglicanorum coetibus, in which ther Holy Father reached out a sustaining hand to those oppressed by unorthodox and unorthopractic elites closer home.
Of course, Benedict's course of action will be anathema to those who believe in the autonomy of the Local Church, won't it? If the culture of a local church favours the conditions which give rise to a disgrace such as the pedophile priest scandal, well, that's fine, isn't it? It's what we call Inculturation, which can be the pretext for more or less anything. If the self-perpetuating oligarchies called Episcopal Conferences - and their bureaucracies - are happy to carry on business as usual, then obviously we must do nothing to contradict the Spirit of Vatican II.
The Bishop of Rome is the Successor of S Paul, as well as of S Peter. Distant in body, but present in spirit, he has the right to judge the sinner with the power of our Lord Jesus Christ (I Corinthians 5) and to set straight the crooked ways of the local church. As the deadly legacy of the Conciliar Decade wreaks ever greater havoc on the Flock of Christ, what we need is a more Pauline Papacy.