It's my understanding that the "big 3" SAs all have honor remediation programs. Some (grads, current mids, profs, etc.) think they are a good thing; others do not. I think most people are ok with them IF they are offered/administered "fairly."
As with Admissions, "fairness" is a difficult concept to implement. However, most of us would say that remediation should not only or primarily be offered to members of certain "groups," such as big-sport athletes, minorities, women, etc. There was a major investigation at USNA a few years ago around this very subject and thus I would think USNA is particularly sensitive to how and when it is an option.
The reason for honor remediation BTW is that some mids don't come from an environment where honor was emphasized and it may be difficult to make the "switch" overnight no matter how many lectures one gets. Thus, as stated above, remediation is more likely to be offered to an 4/C or 3/C, in situations where the mid admitted guilt, where there may have been some extenuating circumstances, etc.
As also noted above, the Supe must approve the decision and, in today's environment, the mid is probably less likely to get the benefit of the doubt.