"I would bet everything I own though, that he realizes this"
He may not know as much as we assume he does. Most stuff he gets to see will be filtered through the bishops and his advisers and many people only want him to see good news. (After all its the new spingtime!)
The average Vatican secretary receives 30,000 pieces of correspondence each year, so most will only receive pro-forma replies and be filed.
If all bishops manipulate their statistics to the point that one I know here did, before his ad limina visit, then it is not safe to assume that the Pope is given an accurate picture of the state of things. That is one area where a good nuncio who is pro-Rome can make a lot of difference.
However, I agree that he must be aware of some of the major stuff.
I realize he may not be able to perhaps even do that now, but the crumbling of his Church did not begin yesterday. Another question for you, who chooses the men closest to the Pope? Don't mean that to be an ignorant question. I'm just wondering if rules and/or protocol dictate who you can surround yourself by to one degree or another.