I agree with little on this one. I would not want children exposed to anyone with a serious illness, mental illness included.
It is very difficult to judge a case like this without all of the information - far more than can be put in a discussion group post. One of the wonderful things our society provides is a system of laws and judges who are impartial to decide difficult issues. Now, laws and Judges make mistakes - but I think they still do a better job than decisions by people who are emotionally involved.