no I don’t believe God is happy about that. I believe that the Reformation grieved Him. He started one Church, not thousands of denominations, as you said.
However, I think there’s a difference between denominations and individual people… God might not be happy about the Reformation, but it’s not like He hates Protestants. He wants them to be in full communion with the Church too. He hears and answers their prayers. They can go to Heaven etc. Even though their pastors teach the wrong things sometimes.
What I’m saying is that God would not hold individual Protestants responsible for all the divisions, unless they themselves started the divisions (like Martin Luther). All the people who just go to their churches on Sundays, they’re just following what they were taught, what they understand to be true. God will judge each person’s heart, He will look at each person individually.
So I think, we should as well

even though we don’t know people’s hearts, we should still love all people. I have Protestant friends who I know love Jesus very much. In many cases, they’re better Christians than I am. I wouldn’t be surprised if they receive a greater reward in Heaven than I will, even though I’m Catholic and have the Sacraments… because it’s not enough to just have all these graces, we have to make use of them, not waste them. It might be that God would judge us harsher… however, it’s also true that it’s easier for us

we have more ‘tools’ to equip us for Heaven…so to speak…
anyways… I drifted off topic…
I think we should make a distinction between individuals and their religions. If God is against their religion, He still loves them.
So we should disagree with the incorrect theological teachings, but recognize that all people are searching for God, and that people are given different amount of grace… a Protestant who lived for God and simply never thought about the Catholic Church, might be better than a Catholic who was given so much yet was lukewarm.
(of course if a non Catholic were to knowingly reject the Church, that is different.)
I guess all I’m saying is that we should humbly pray for those outside the Church, not feeling superior to them, but understanding that the Catholic Church is the fullness of truth. Maybe it would help to remember that we don’t really deserve to be in the Church, and we are not inherently better than non Catholics, - I still wonder sometimes why it was that I became Catholic and not my Protestant friends who also love Jesus…