Folau is never going to retract it, it is something he genuinely believes. The problem for RA is that this isn't a person who has stolen a laptop or snorted cocaine or punched a team mate that can be made to say 'oops, my bad'. It is a person who has strong Christian beliefs which include sharing the 'gospel' and Rugby Australia is quite literally making a martyr of him for it.
Worse, there are a lot of the rugby community, especially Pacific Islanders that will feel threatened by this decision because they are Christian.
RA has quite literally fallen into culture wars trap 101.
All of it would go away if we could all agree to let dumb comments on social media slide the way ABC let Magied's slide, but it won't happen. It will go to court, no doubt end up in the high court and either Folau will win causing major problems for RA's finances (likely) or a very controversial decision will be made that results in a lot of very unhappy Christians, Jews, Muslims and anyone else who worries their rights will now be trodden on by angry social media types.