you've got your timeline seriously skewed. Luther produced his version of the new Testament in the early 1500's, and the entire bible in the 1530's. Tyndale's, a translation to English of Luther's New Testament, came in the 1520's. A slew of different versions were produced up through the late 1500's, including the Douay-Rheims. The King James was compiled in the first decade or so of the 1600s.
And Yet, literacy rates in England (excepting Wales), Scotland and France remained around only 60% into the 1700s.
Nothing skewed here..... 60% being able to read the bible without depending on the Catholic church to interpret for them, is better than 0%. And think about it, that 60% could and was reading it to their family and congregations.