Do you remember that when Egan first came on he tried to remove Frank Pavone from his Priests for Life Ministry? It was only when great pressure was applied that Pavone was allowed to continue. He also approved a reckovation of St. Ignatius Church in Manhattan. It was only when great pressure was applied that he refused to let the Jesuits make their changes.
So I think there is in a sense some good news in this mess - Egan has shown that he caves under pressure from conservative Catholics. Maybe he's just a political animal and the lavender mob doesn't own him.