Well, what use is it for the kids to make the Sacraments and their family never darken the door of the Church again? I see this in my own Parish. The kids make First Communion, and since, until recently, they weren't required to make First Confession before making First Communion, some don't come back until it's time for Confirmation, then they have to make First Confession then. The only reason some of them even come back then is because their parents are offering a new car as a gift, or because they want to get married in the Church someday, and they know they can't if they aren't Confirmed. They don't pay attention in class; just sit there, and are Confirmed anyway. After that, no one sees them again, except with their family at Christmas and Easter, until Mama wants to have a big Church wedding.
It is not religious, it is cultural, and maybe, just maybe, what this priest is doing will actually get some of them to THINK about whether or not their faith is truly important to them; AFTER they've gotten their knickers untwisted.
I also said that the reasons for the parents sending their children to religious instruction classes were irrelevant, and (probably) nobody's business. This irrelevance applies to half of your post. However questionable the motives of the parents, the children have been put in the hands of the instructor for a reason. I would expect that a person who takes on the responsibility of teaching a class in religion would be focused on the spiritual aspect of the mission and not on analyzing the worthiness of the individual students to hear the message. God only expects us to do our jobs as best we can and that is what we are held accountable for. The motives of others are not our responsibility. I think that cutting these children off from an opportunity to learn about their Catholic religion was extremely short sighted and in both the short and long term, very hurtful to them spiritually.