Lepanto, I agree with your opinion on the matter.
Here is my take on the paragraph you quoted:
The Catholic Church rejects nothing that is true and holy in these religions. She regards with sincere reverence those ways of conduct and of life, those precepts and teachings which, though differing in many aspects from the ones she holds and sets forth, nonetheless often reflect a ray of that Truth which enlightens all men. Indeed, she proclaims, and ever must proclaim Christ “the way, the truth, and the life” (John 14:6), in whom men may find the fullness of religious life, in whom God has reconciled all things to Himself.
The Church is acknowledging the work of the Holy Spirit in these religions. God wills that all men be saved, and so it is logical to believe that God would try to enligten those who follow these false religions. All good comes from the Holy Spirit, and the truth contained in all religions is a consequence of the workings of the Holy Spirit. However, Christ is the way, the truth, and the life, and as the document states, it is only through him that men can find the fullness of religious life [in the Catholic faith].
The Church is not saying that we should not engage in evangelisation; she is simply stating that she “rejects nothing that is true and holy” in false religions because these elements came from the Holy Spirit.
Although all religions contain a “ray of Truth,” the Church still teaches that Salvation is achieved only through Christ. The last sentence of the above paragraph restates the need for continued evangelisation.
However, many Catholics seem to ignore this call to evanelisation, and focus entirely on the fact that the Church treats these faiths with “sincere reverence;” they interpret this as saying that these religions are equal with the Catholic faith, which is totally wrong.
Only in the Catholic faith can man practice that religion which is truly pleasing to God. The Catholic faith has in full what the other religions have in part. All elements of truth that these false religions contain lead believers to Christ, because Christ is The Truth; there can be no truth that is contrary to Christ. Christ is the only truth, and he uses the other religions to guide men to him, and ultimately the Catholic Church. If anyone searches with sincerity for the truth, they will find the Catholic Church.
It is unfortunate that many believe that the other religions offer a separate path to salvation because this is not true. This is the heresy of religious indifferentism. We still need to evangelise the whole world. It is not wrong to acknowledge the truth in other religions, but it is wrong to use this as an excuse not to evangelise.