I personally think that the R.C.Church would be better off to eliminate indulgences because it makes the Roman faith a works-righteousness faith. The only good thing that our works are good for is to serve our neighbor.
I am glad you said this, hn, because it clarifies your misunderstanding of indulgences, and the relationship of works and grace. It is a very common misunderstanding about the Catholic faith.
Although it is true that our good works do serve our neighbors, they also have effects that we may never know in this life. If our separated brethren would not stop reading Eph. 2 at v. 9, the relationship might be more clear:
Eph 2:8-10
8 For by grace you have been saved through faith; and this is not your own doing, it is the gift of God - 9 not because of works, lest any man should boast. 10 For we are his workmanship, created in Christ Jesus for good works, which God prepared beforehand, that we should walk in them.
We are obligated to walk in the good works He has created for us, even if we do not know all of their effects.
1 Peter 4:8
8 Above all hold unfailing your love for one another, since love covers a multitude of sins.
Since we know that sins are only covered by the blood of our Lord Jesus, then we must also know that walking in love, by grace, will enable us to participate in expiation of sins.
If our deeds only benefitted our neighbors in this life, why would they follow us?
Rev 14:13
3 And I heard a voice from heaven saying, “Write this: Blessed are the dead who die in the Lord henceforth.” “Blessed indeed,” says the Spirit, “that they may rest from their labors, for their deeds follow them!”
Rev 19:7-8
7 Let us rejoice and exult and give him the glory,
for the marriage of the Lamb has come,
and his Bride has made herself ready;
8 it was granted her to be clothed with fine linen, bright and pure" -
for the fine linen is the righteous deeds of the saints.
Our righteous deeds clothe us in fine linen, so that we will be ready for the wedding feast.
It is necessary to distinguish between works of the flesh, and works of the spirit. Works that emanate from His grace at work in us are part of the fruit of the Spirit.
Titus 3:8-9
I desire you to insist on these things, so that those who have believed in God may be careful to apply themselves to good deeds; these are excellent and profitable to men.
I always think about this passage in Titus when people try to say that all of our works are like “filthy rags” before God. If that were true,then how can they be excellent and profitable?
And let us not leave out the Epistle of James;
James 2:22-26
22 You see that faith was active along with his works, and faith was completed by works, 23 and the scripture was fulfilled which says, “Abraham believed God, and it was reckoned to him as righteousness”; and he was called the friend of God. 24
You see that a man is justified by works and not by faith alone. 25 And in the same way was not also Rahab the harlot justified by works when she received the messengers and sent them out another way? 26 For as the body apart from the spirit is dead, so faith apart from works is dead.
Our works “perfect” or “complete” our faith, bringing us into sanctification. They not only serve our neighbor, but grow us in holiness at the same time.