One scary thought that came to mind is the impact this will have on how the Sangha community will interact with each other in the future: they will be more concerned about the impact an interaction with another Lama will have on THEMSELVES than the benefit an interaction (of Dharma sharing) will have on all sentient beings.
In other words, the focus will be on self (enhancing the self-cherishing mind) which is totally in contraction to the practice of Boddhicitta where we are taught to focus on others and benefiting others before self. Imagine: a Lama is afraid to interact with another "just in case' he is a DS practitioner".
It is indeed sad that this would happen, but I think it is not so much the focus on self or self-cherishing mind, but I reckon it is because most Lamas are attached to a centre/ monastery, and hence it is the interest of these students that the Lama think about. I do know that some centres (usually managed by students, instead of monks) have been very careful and has 'censored' lamas who are Shugden practitioners or 'suspects' from visiting their centres 
Nevertheless, I am glad that monastery like Shar Ganden and Serpom are around with qualified teachers and masters, producing the next generation of Shugden lamas & teachers. I am also glad that the centres around the world that are practising Shugdens are also still around and growing, hence the practice will continue to grow despite the challenges.
Such is the time when degeneration is so prominent that even sangha members holding vinaya vows can criticise their own Guru because they are under "peer group" pressure from the TGIE and HHDL.
It further shows even in such a holy sangha environment and community like the monastery, one finds it hard not to mix politics with spirituality.
It will be a good reflection of the minds of the sangha and the students of Denma Locho Rinpoche........are they more afraid to offend the one with power, in this case, the TGIE and HHDL or are they willing to defend what they belief in and face any consequences there after.
In most cases, the weakness of the human minds prevail (whether you are a monk or a lay person), their own security and wellbeings come first to any practices they are "so-called" practicing and become a true hyprocrite of themselves and the Dharma.
Situations will always be created by enlightened beings for students or followers to check our own minds, whatever we say or do, is totally a reflection of our own delusions and not the acts of these enlightened masters.
Most of the time, are we behaving like a hyporcrite or are we practicing true Dharma?
