Yes he is a douche, but the fact is it's the religion that is the bigger douche here. Catholicism does not tolerate homosexuality, and as a Lesbian she shouldn't be able to consciously be a Catholic and take communion. She really should rethink her religious beliefs and realize that Catholicism is not for her. She would probably be a lot happier.
That's weird because the written statement by the Archdiocese in that article would lead me to believe otherwise. If Catholicism didn't tolerate homosexuality to the point of withholding communion from known homosexuals then the Archdiocese would have stood behind the priest's decision.
On a separate note, it is truly sad that the priest does not get what Jesus was trying to teach in the gospels. He didn't hang around with like minded holier-than-thou folk, he hung with prostitutes and fishermen, and told uplifting stories involving people not of his religion.