Do Mainline Presbyterians oppose Satisfaction Theory? Is this why "In Christ Alone" was rejected for their Hymnal?

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If you want to understand why the PCUSA's hymn committee rejected the hymn, then you should read its brief statement of faith. The statement of faith focuses heavily on grace, and satisfaction theology tends to focus on works. The line from the song in question is very much based in satisfaction theology and thus contradicts the statement of faith.

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One does not need to subscribe to any specific theory of the Atonement in order to agree that God has "wrath" towards sin, as such is plainly stated in Romans chapter one. Sadly, the attitude of some so-called "churches" seems to be one of "never mind what the Bible actually says, we're going with teachings that we feel good about".

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