Yael.e, which points of Health’s do you agree with? If the Chareidim till now were able to play games and push laws through that let them take the money despite the widespread resentment, it does not mean it is not Chillul HaShem. If you and Health(!!!) learn about Chillul HaShem, you”ll see that if a Yid, a Talmud Chocham does something which is not assur but might look bad, it is bona-fide Chillul Shem Shomaim!
GAW, it is bizui Talmidei Chachomim to put forth such conjectures. It is one thing to have kashos on the p’sak, but what you did is different.