I believe that NOTHING can kill God's presence in the soul, that there is no need for repentance if one is following one's well-formed conscience, and that God's mercy trumps all.  I do not fear God, I love God.   I fall often but I never doubt His mercy and He never doubts my intentions.
Bishop Morlino's stance exactly matches the Pharisees and others who felt so threatened by divine compassion that they tried (unsuccessfully) to snuff it out.  Their kind was a scandal 2,000 years ago and they continue to be a scandal today.