That article says that they will be combined into a Technical University. The key sentence in that article is " the move could damage the international reputation of Irish education by lowering standards". Regardless of that, yes, a Technical University would be useful in some areas, like engineering and science.
Psychology does not belong in a Technical anything. Would you hire a surgeon who had been educated at an IT? Or a clinical psychologist? No you wouldn't. Sport Psychology is no less a discipline of psychology than clinical, educational or counselling psychology are. Yet because it is an emerging field, there are courses being offered all over the place. I repeat, the masters at WIT is way ahead of any cert or diploma being offered in Ireland. But it is not at the same level of qualification or recognition of competence that a masters by research at one of the universities would have, and is definitely well below someone who has gotten a masters from Loughborough, Univ of Edinburgh or Liverpool John Moores.