This makes no sense whatsoever. Priest are not forced to lives of celibacy, they know going into the priesthood that it is part of their vows. It is voluntary. If someone wishing to enter a vocation cannot take the vow of celibacy, let them enter some other vocation where it is not required.
So, in your opinion, because the West is obsessed with sex, the Church should give in to this? Anyway, there are plenty of heterosexual married men and women that are pedophiles. Just open the NY papers everyday and see how many so-called "teachers" in the public school system are caught on a regular basis. If someone is truly celibate they will not become pedophiles.
The real problem with the Church is that it was too lax in allowing homosexuals into the priesthood in the first place. Now they are reaping whay they have sown. But, I have faith and I know the Church will get through this crisis. It has gone through much worse in the past and came through.