The pope didn’t make an example of Luther. He was invited to change from his position and even invited to the Vatican if I recall correctly, but he ripped up and I think even burned the Papal Bull.
Several reformations had occurred in the Church, and at this particular point in history, after being ravaged by the black plague, those priests and clergy that tended to the sick often died themselves. Simony occurred. The education wasn’t so good to priests. Something needed to happen, but not a break from the Church that would split Christendom. Look at St Francis of Assisi, he was a reformer, but he is not a heretic but a saint.
The Protestant Reformation differed in that Luther denied authoritative correction and so split from the Church. He had political power. As you can imagine, politically speaking, several countries would be glad to have the burden of the Pope lifted away from them (later, the PR became a further power grab when it was decided that a prince’s religion was the religion of the land, and in general the ability of widespread books and reading in addition to a denial of authority led to the peasant revolt and a general revolution in terms of societal relations, but that’s another story). He couldn’t be just arrested or killed as he was protected by royal power.
Yes, a lot was happening around him, but that does not mean he was not a principal actor in the ordeal. Without his actions, history would have been drastically different.