You are right that it would be a disaster worse than the Reformation. The Reformation from my perspective as a Christian Lutheran was a huge blessing. The road you describe Campion...the slide of the Catholic Church to a state similar to the Episcopalians would be a disaster, even to me.
That obviously isn't my perspective as a faithful Catholic. ;-)
I would suggest that no sundering of Christ's body is ever anything but a disaster and a tragedy. Sometimes it is a necessary disaster if someone refuses to repent of their errors, but it's still a disaster from which we should pray to be delivered through God's wisdom and grace.