Both sides had double standards. Look at how they treated the likes of Erasmus. At first he was well-loved by conservatives and reformers alike. Then suddenly he was the enemy of both. Indeed all the advocates of the “third way”, where there was hope of finding accommodation between reformer and Catholic, were vilified by both sides. The Reformation and the Counter-reformation began to tend towards the irrational. The irony, of course, is that all the Reformation did on both sides is ultimately delivery Christianity into the hands of the temporal powers. The Protestant Princes used the Reformation as a means to break with Rome and set up national churches that they controlled, and the Catholic Powers, in particular Spain, basically seized control of the Church, to the point where Roman envoys could do little other than gaze on in horror and disbelief at how the Counter-Reformation had become little more than a tool of the state.
If the Church then had taken something akin to the stance of the Church now (which is what the pre-Luther reformers had really wanted), keeping by and large out of the halls of power, it’s possible that none of this would have happened. But for Rome, it really was about money, and the Papacy and the bishops throughout Europe failed to see that the economic situation in Europe was transformed, and they couldn’t behave like a Medieval church any more, a kingdom within the kingdoms with its own income and nearly independent sovereign power to bring princes to their knees.
Not that I spare much sympathy for Luther.