<The bishop needs to repent.>
Of course he does. He's guilty of pastoral malpractice and he 'promulgated' the policy in a cowardly, backdoor maneuver by way of a Vicar General who issued the policy on his own initiative, but consistent with the mind of the bishop.
But in a larger sense this pathetic bishop is not really the problem. The problem is this: the evil policy he has enunciated is consistent with canon law, and canon law is consistent with the official teaching of the church. That's not to say that the law and/or the teaching require the bishop to do violence to GLBTQ persons and their families, but they allow him to. I don't think removing the bishop would accomplish much, unless the pope, minimally, enunciates a pastoral policy to guide bishops around the canon law, or better yet, changes the law.
Ultimately, though, we must acknowledge that the teaching and discipline of the church about human sexuality is desperately in need of reform. That's the real and urgent issue.