I wouldn't be surprised if that is RA's first port of call. Suspend Folau for the rest of the Super Rugby season. Send him to be invovled with the Gay community, attend AA meetings etc and allow him to see first hand what it's like. Send him to club land until the Rugby Championship and see if he shows any remorse.
But that's if Folau's tears aren't crocodile ones and that he has a genuine desire to play for his country.
I think it's the most appropriate course of action. After the fine he's then playing club rugby on a heavily reduced income and has to earn his right to play both for the Tahs and the Wallabies. It could also be the cheapest course of action for RA, if he offends again it would result in instant termination and thus no payout, whereas if they terminate him outright now it's going to result in a lengthy and costly legal battle.
Haven't they already stated what they intend to do?
They did, but don't forget the 'compelling mitigating factors' outclause, plus the press release at the time appeared to be a way to induce Izzy to contact them. We don't know what those compelling factors are, but you can been rest assured his legal team will have found many.
It's important to note this is not a breach of contract, its a breach of the Code of Conduct. Whilst it's been decided it was a high level breach of that code, and that can result in a termination of his contract, there definitely may exist compelling mitigating factors in committing that breach, i.e. his religious beliefs.