The Vatican has always endorsed exorcisms as far as I know. That said, I remember their policy being along the lines of only trying an exorcism on a person if everything else has failed(like therapy and medicine). The number of priests "certified" to perform exorcisms is rather small if I remember right. Exorcisms of buildings and objects are more common I think, and are often heard of as being used to stop a "haunting" and drive out the ghosts.
Don't get me wrong, I think it's still stupid, but the church was at least somewhat sensible about it as far as I knew. And at least exorcisms usually aren't as bad as "Re-birthing "therapy"". Extra quotation marks for emphasis.
i got the info from the vicar of st. sernin basilica (catholic, toulouse, france). the vatican actually HAS on call a brigade of exorcists. they are trained psychiatrists as well as having training in self-defence. church rank is give-or-take vicar, they are clergymen. when the vatican (or a local church) gets a call about demonic possession, they send in these guys to try and dispel the notion of demons (that's why they're shrinks. to actually diagnose schizophrenia or other mental illnesses), and if that fails yes they do an exorcism which involves fasting for a day, staying up all night in prayer, and chanting stuff in latin...
the vicar i talked to cracked up at that last part, because he knows full well that that's a pure placebo effect. but apparently the exorcist he knows is a really nice guy. whatever works, i guess. the funniest thing is that for once i commend the church on their progressive stance.