Yes, without Baptism there is no spiritual hope or life; that is without question for Catholics. But Baptism does not guarantee eternal life and how hard the life-long journey for those who may have seen a mockery made of the very sacrament that initially brought them a life with Christ.
That first part isn’t right either (unless you subscribe to the Limbo theory). The sacraments are gifts from God to man, not handcuffs on God’s ability to give extraordinary infusions of Grace. Baptism is not magic. It’s a gift given freely by God. It’s a grave sin to illicitly baptize the children of your atheist neighbors while babysitting (no consent). Why? Because doing so is an act of superstition! You are attempting to use external actions and words to manipulate the supernatural into conforming to your will. That’s pretty much the definition of superstition. Parents baptizing their own infants in accordance with Jesus’ teaching, on the other hand, are joyfully accepting God’s gift and trusting that that same Grace will work in their children as the parents do their best to raise them in the faith. See how the former case is superstition and the latter is faith?
Now we come to the case of parents stubbornly, publicly and persistently in rebellion against God. This isn’t comparable to the couple who screw up in the heat of the moment and commit, ahem, the sin of Onan. It’s more comparable to the couple who actively seek to persuade their fellow catholics that contraception and abortion aren’t sinful regardless of what a bunch of old fools in funny hats and robes say.
So in a way, I suppose both sides have a point here. DOES the church deny baptism when the likes of, say, Nancy Pelosi ask for it for their infants? Probably not. But should the church start asking harder questions to parents about the sincerity of their faith? Probably. It may be a good critique to complain that the line gets drawn for gay people first. That’s worth pondering as a potential double standard.
I do think there is a point where denying baptism for the infant child of utterly unbelieving nominal catholics is an act of charity, not a meanness. Baptism both conveys Grace, but also places a grave responsibility on the parent and on the one receiving that Grace. If it’s clear that the parent isn’t serious about believing, then the child may be better off being introduced later in life to Catholicism than to be taught implicitly that it’s a joke to be ignored whenever convenient throughout childhood.
P.S. A working paper is hardly an authoritative document yet. All manner of utterly bizarre things have been put together in draft form over the years and squashed by the Holy Spirit so that they were never promulgated formally. Neither infallibility nor church authority works by divine protection on Vatican letterhead such that anybody who manages to get some is guaranteed to write the truth on it. Without names, authors or other reliable information, this Reuters report means nothing. If indeed it is a working paper (I haven’t researched it yet), then it has no authority until the bishops actually review and discuss it.