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Some factions of the clergy (and laity) became a little too comfortable with the idea that Catholicism had nothing to do with sacraments and the afterlife. It was trendy to think this way.

But why has this mindset been allowed to prevail for what seems like an eternity? Christianity (and Catholicism) is about, at its core, loving God with all ones heart, mind and soul, (and thus wanting to imitate Christ) and about achieving salvation. It seems to have been greatly devalued in most places.

As I said, it is a little complicated sociologically and intellectually. The basic fuzzy concept fulfils a couple of delusional fantasies. One is that personal sinful conduct doesn't really matter. If Catholicism just becomes socialism or some other type of secular humanist liberalism (with a little Jesus symbolism thrown in for dramatic effect), then you don't need to worry about your sins, right? People can then do whatever they want sexually. What's REALLY important, according to this point of view, is solving global poverty (or getting Gore elected depending on the trendy emphasis currently fashionable). It also has something to do with intellectual pride because the theory itself (Secularization of Christianity)is suited for a certain "new class" elite type who wants to be accepted in all the right circles, especially elite liberal or left-wing academic ones. The "Death of God" school of theology back in the 1960s was a classic example. By the time people had finished reading Bultmann, Bishop Robinson, Altizer, and all the various neo-Freudianisms, they would be fairly smug and condescending armchair liberal lotus eaters. You can still find these types in Divinty Schools, certain seminaries, and some Catholic universities.