Perhaps I can sum it up this way.

How the Church acts in *private* (the free exercise of their religion) is one thing.

How they act in *public* (operating schools, hospitals, etc), is subject to *public* laws.

There are some grey areas in there, I'll be the first one to admit that (hence the reason I was doing the "what ifs" to see where to draw the line)

To take a simple example..

A Church doesn't have to marry homosexuals if it's against their teaching.

A Church-sponsored hospital CANNOT deny service to a homosexual (not saying they WOULD, I'm just saying they CAN'T)