Interestingly, this is something that Cardinal Ratzinger has been working on for over 10 years with the American Bishops. He, and the Church, recognizes that orientation does not mean activity, but he wanted the Bishops to make observe the seminarians carefully, and make sure that there was no sexual activity of any kind with either men OR women.
I was just talking with my brother-in-law, who is a priest, and he said that they used to give them very good spiritual direction about dealing with celibacy, back when he was in the seminary in the late 60's. In the 70's, apparently the Church ceded this responsibility to the 'experts', in the Psychology crowd. Unfortunately, they also happened to be moral relativists, therefore many priests had terrible spiritual formation in the area of sexuality, and it also opened to door to allowing practicing homosexuals, since the 'experts' didn't see any problems with that.
These same 'experts' were the ones who told Dioceses all over this country that the priests they had sent to the clinics were 'healed' of the problem and it was ok to send them back into ministry. The biggest mistake the Bishops made was not chucking these bastiges out on their butts when it was discovered that they were not healed and had returned to their abusing ways. But they had inculcated the whole 'compassion' idea from their 'experts', and were way too pastoral to these men, and not nearly enough with the victims.
I was in the most conservative Catholic seminary in the country from 1969-1976, and celibacy was never mentioned. Anywhere. Any time.
Back in the '50s, Bishop Sheen was scathing in his remarks about modern psychiatry and psychology, but there weere always those who disagreeed. In the '60s, som any clergy bought into the therapy stuff, even though it is moonshine.