It seems that there is an idea that as Catholics we have to toe some sort of party line, as if our faith were an ideology. On the contrary, the Catholic faith is all about truth, and we don’t have to be afraid of the truth, wherever it comes from.
While the Church is indefectible by the promise of Christ that the gates of hell will not prevail, we must not kid ourselves into thinking that Jesus insures the survival of his Church in any particular place. North Africa used to be Christian, but it would be very hard to find any Christians there now. The seven churches in Asia of the book of Revelation no longer exist. Will the Church in America go the way of those seven churches? That is entirely possible, if we do not repent (Rev 2:5).
As a Catholic, I am not afraid to admit that Protestants are generally beating the socks off of Catholics in the field of proclaiming Christ to non-Christians and, most unfortunately, to nominal Catholics who for whatever reason are far from Him. A Pentecostal minister, as imperfect as his message is, probably does much more for the Church than a lukewarm Catholic. In the wisdom of God, what could this mean for the Catholic Church? Why is He permitting this to happen? If we love the Church, we should ask Him! I think that is exactly what Pope Benedict and the Cardinals are doing, not just accusing the Protestants of proselytism, but asking God and each other what all this means for the mission of the Church to all nations.
I think people need to hear the Church talk about Jesus and the Holy Spirit more than they need to hear about just social structures. There is no contradiction, but there is a question of priorities. They need to hear the reason for the hope that is in us. If they’re Catholics, they need to learn how to live the sacraments with living faith and trust in our heavenly Father.