The right move by the Catholic Church?

So the Catholic church is back at it again. The cause of the Protestant Reformation has been reinstated (well re-encouraged by Pope Benedict) by the Catholic Church. Indulgences. This isn't as obvious as it sounds, but it is a huge source of concern. Priests abused indulgences, "the full or partial remission of temporal punishment due for sins which have already been forgiven," in the 15th and 16th century leading to the Protestant Schism.

It would seem that the Catholic Church is trying with such desperate fortitude to draw Catholics back to the church. Perhaps it is their patriarchal, ultra-conservative stance on society that has ruined their reputation and sense of moral authority and not the extra-forgiveness that one seeks through indulgences. Indulgences did lead to the abuse of power and the rich seeking favor over the poor. It was also a significant source of fund raising for large capital projects, i.e., St. Peter's Basilica. It didn't seem to work back in the 16th century when Martin Luther posted his famous 95 Theses on the church door. Why will this theory (theology?) work now. It seems desperate and a scary road to go down.

Door of the Schlosskirche (castle church) in Wittenberg 

to which Luther is said to have nailed his 95 Theses, sparking the Reformation.

When we fail to heed history's lesson, we are apt to follow its similar (and sometimes scary) path.