I agree that this job should have gone to a woman in the first place (although I don't think there's anything wrong with the guy's credentials or qualifications in isolation, and I do believe that he's a decent person).
They're dressing it up to be about harassment but I would guess that the real issue will be that employment laws around sex discrimination would prevent the exact same job being immediately given to someone else purely on the basis of sex. It could leave the employer open to sex discrimination claims.
It seems that the tasks that the person in this role would have carried out will still be carried out, just under a range of administrative functions instead of from one PRable source.
It wouldn't surprise me if there was another period dignity officer appointed in time, but the role won't be called that, and the job description will be a bit different to avoid the potential for discriminatory action.