Christopher Hitchens's take on the brief of the Office of the Solicitor General supporting the Vatican's position in favor of sovereign immunity in Holy See v. Doe is here.
I don't know that I'm in favor of the State Department's preparing a human rights report every year for every government on the globe, but if that's the law, I am not presently aware of any reason that the Vatican shouldn't get a report like everyone else.
The Wall Street Journal law blog's posting on this story is here. The Vatican's PR people should try to get rid of the photo the WSJ uses in this story. It makes the Holy Father look like a perv.