Well, keep in mind that the Church has a tax-exempt status to consider. And unlike Protestant denominations, the tight association of all Catholic Parishes makes it easier for nutjobs like Americans United for the Separation of Church and State to target the whole institution at once.
Most Catholic priests that I've known have actually been fairly liberal except on moral issues. I live in a fairly conservative area with an huge retired military population (Virginia Beach), and I have seen a lot of strife within parishes because of the anti-military pacifist attitudes of many priests.