Cause for hope: vitality of conservative Catholicism, seen especially in young clergy that emerge from it
Cause for despair: continued (and probably expanded) liberal dominance of the hierarchy
The question is whether the cause of despair will kill the cause of hope. Conservative Catholics have resisted pressure from priests and bishops for years, but (except for traditionalist groups) have been able to appeal to the support of the papacy. The loss of papal support is demoralizing and will give new encouragement to liberal priests and bishops who are inclined toward intolerance. We'll see what happens. Some (especially clergy) will just embrace liberalism as the new order--these may even become the worst persecutors of resistance as they turn on former friends, who cannot go along in good conscience. Some will be pushed in the direction of traditionalist groups, who have already built structures (intellectual and institutional) for outright resistance. Some, disillusioned entirely with the papacy, will defect to Orthodoxy or conservative Protestantism. Some will lose their faith.
Most, I think, will find a way to more or less soldier on as they do currently, either performing mental gymnastics to claim no contradiction between their theology and take on Vatican II and the direction of the papacy, or keeping mum about it, or becoming more comfortable with frank criticism of the papacy in light of the tradition as a whole, while still remaining within the mainstream body of the Church--so, a kind of Vatican II traditionalism, that accepts the magisterium of Vatican II and the recent popes as part of the tradition, but without the mottramist tendencies that are view the pope as unable to do wrong.
At least in the U.S., the conservative movement has already developed its own structures for handing on the faith outside the reach of clergy of dubious orthodoxy: home schooling, publishing houses and periodicals, a few colleges. These things aren't going away and their interest in self-preservation will direct them to maintain a tenable position of resistance that continues to appeal to the conservative and the orthodox while not going too far outside or against the institutions controlled by the hierarchy. We developed these institutions because we the official and mainstream institutions were corrupted by liberalism, ineffectual at teaching and spreading the faith, and closed to us. In the last few years, we had finally succeeded in making some inroads into those institutions and reversing some of the damage. We're likely to see much of that progress reversed.
What we do not really have are our own parishes and clergy. Yes, there are parishes with a reputation for orthodoxy, but unless they are staffed by conservative religious orders, a bishop can squash these instantly with a change of personnel. (And, a bishop can kick an order out of a diocesan parish, too, though that's much more transparent and burdensome given the shortage of priests, so it's less likely.) Traditionalist groups, centered on preserving the liturgy against the attempts by the hierarchy to suppress it, are further along in this area. This is likely to drive more conservative Catholics into Latin-mass communities, which cannot be so easily co-opted or compromised by unfriendly bishops.
Like I said, I think we'll see some reversal in our ability to make inroads into official institutions, but we're strong enough at this point that I think few bishops are going to make too many sudden or dramatic moves to squash us. We no longer will be able to appeal to the papacy, but the internet now brings these things to the public forum, so bishops will be aware that they are courting a firestorm of nasty, public criticism if move against conservative groups.
