Nowhere does the Cardinal say he is not going to baptize children. He only says women can't sign the slot on the paper for "father" and men can't sign the slot on the paper for "mother."
This is how I read it also.
This article ends with: The example highlights the problem churches are set to face, etc.
The problem will not be that the RCC church would withhold grace from the child.
Churches that believe the Sacrament of Baptism does something to the individual baptized, such as infusing grace or faith, will not want to refuse the sacrament to anyone.