There's been quite a debate about this around here (I live in northern Indiana, not too far from Notre Dame). All the local priests and bishops have chimed in on it. Many are boycotting, which implies an awful lot if you know how such things work. The Vatican has asked local church officials not to protest the event.
As far as the debate goes, the two sides are pretty straightforward. One side thinks Obama should be invited to speak out of respect for the office, and for tradition, and for the idea that civilized people can disagree even on important issues and still be respectful of each other. The other side thinks that principals should come first, and not murdering innocent babies is a pretty important principal to stand up for.
This is one of those rare issues where both sides are completely right and yet they still disagree strongly.
Special exceptions for the wealthy, powerful, and popular are nothing new. While it's probably hypocritical to invite him there and honor him, I don't think it's going to confuse people about the Church's stance on abortion or anything.
It has nothing to do with special exceptions for the wealthy and powerful, nor is it particularly hypocritical, but thanks for working your your own prejudices into the discussion.