I am interested in Joe's response. There can be no doubt that he is better qualified than most to comment on the Catholic church and its machinations. However, it does raise the question of when does an organization become so loose as to cease to have a distinguishable character?
The Catholic church has got to evolve if it is to retain meaning and relevance but, at the same time, it has to be absolutely clear about its core values. The attempted cover-ups of paedophilia and other wrondoings in an attempt to protect the church has done an enormous disservice to the church and may have done irreparable harm. Could this be because there is a major problem with Curia - has the church hierarchy become so inward-looking and obsessed with image that gospel values have been lost?
The history of the Vatican has much that is murky, Roberto Calvi and Marcinkus spring immediately to mind. It seems to me that the organization must do away with a large part of the Vatican bureaucracy, bring in a great deal more transparency and recognise that everyone is fallible (even if they wear a red hat) and stop closing ranks to protect those responsible for wrongdoing.
Belonging to any club or organization involves accepting the rules and ethos of that organization, become too liberal or too conservative and you not only harm the organization but you call into question the values of the organization. When the organization is a church this effect is magnified as churches are targets for active dislike by many who seek to deride and condemn. Honest acceptance of the tenets of Catholicism and an end to lip service by too many senior clerics are probably two of the most important reforms needed.