From what I can tell, the House Leadership acted appropriately with the information they received. If their story holds up, they are morally in the clear.
Investor's Business Daily has an editorial (ht Drudge) that asks why Democrats are sqealing so loudly now as compared to their reactions to previous Democrats caught in similar moral failings.
They point out other issues for Rep. Barney Frank, President Bill Clinton, and Rep. Mel Reynolds. These were men caught in moral scandals that kept their jobs or, in the case of Reynolds, received a pardon from the consequenses of their misdeeds.
In 1983, then-Democratic Rep. Gerry Studds of Massachusetts was caught in a similar situation. In his case, Studds had sex with a male teenage page -- something Foley hasn't been charged with.
Did Studds express contrition? Resign? Quite the contrary. He rejected Congress' censure of him and continued to represent his district until his retirement in 1996.
Why can't we all rejoice together that we've got Foley out of the House? Let's not play hypocritical games with our government.