As Fr. Z says, he mans up with an apology about his "imprudent comments" about the Holocaust. Insightful enough to be politically sensible, I guess, but I doubt that people would ever let him get away with it anyway. But I have to say that, while the media furor was understandable, I thought it was a teaching moment, too. The bishop was ordained in schism, after all. Lifting the excommunication was because the schism was deemed to be over. The bishop's historical perspectives and actions in publicizing them are obviously wrong, and, yeah, he should be sorted out on those. But I don't want to see excommunication being the blunt instrument used against political, historical, social and various other commentaries, even horribly wrong ones. Perhaps some other disciplinary action to keep him from offending again?
In any case, Israeli Jews seem to understand that Bishop Williamson is (very) wrong and the pope is rejecting his Holocaust views and commentaries.