When I was in grade school, there were a couple of teachers who were having a steamy affair. It was common knowledge among the kids (they weren't too discreet when making out in the car in the school parking lot). It gave something for the kids to giggle and whisper about. The teachers were well liked and none of the kids I knew expressed a desire to see them fired or face harsh discipline. It wasn't like we didn't understand that people sometimes got the hots for each other. We also understood that any marriages involved were in deep doo-doo. We also understood it concerned the people involved, and their spouses, not us.
One of them eventually left their position. I don't know if it was voluntary or not.
What impact did it have on our education? None that I'm aware of.
This is a private matter. It should have been handled privately. My desire would be to find out who did the recording and go after them. Even if there's no law specifically covering the recording, I'm sure there are laws that apply to the distribution of sex films.
Why do we keep pretending to be so shocked when we find out people are having sex?