Earlier quoted context omitted.
But it does devalue the institution of the Catholic Church as a whole. Just as this prize may devalue the Nobel Prize idea, but doesn't touch one bit what other individuals who received the prize did.
Sure, the institution may be devalued, but that's not the claim being made. The claim is, "the others get devalued as well." Feynman's work in QED is no less amazing today than it was the day before yesterday, and the Nobel no more or less an appropriate prize.
However the Nobel committee has complete oversight and control over where these prizes go, the prizes aren't capable of deciding where they go, so a devaluing of the committee devalues the prize.
If the Nobel committee brought out an award for mathematics everybody would think it's about damn time. However if they brought one out for creationist research, not a single scientist on the planet would ever want a Nobel Prize again.