We all just need to come up with a platform for reunification that isn’t based on liberalism. (By the way, does the Catholic Church really teach that Protestants are going to hell? I thought the Vatican II declarations about ecumenism put that to rest.)
That's the whole point of the article. Benedict is suggesting that Vatican II went too far.
The way it was explained to me is that "no salvation outside the Church" meant that even non-Catholics could be saved just by the fact that the Church continued to exist and preach the truth. Somehow these non-Catholics would hear this truth, internally consent to it without joining the church, and would eventually end up in Heaven.
Benedict is suggesting this might not be helpful or correct. The original meaning of the saying "no salvation outside the church" meant you had to be baptized Catholic to be saved. That position was harsh, but it encouraged missionary zeal to save as many souls as possible, and it gave Catholics a good reason to be Catholic.
Though we disagree on the papacy, Mary, purgatory, priesthood, Eucharist, imputation (and plenty more), I believe unity on some level would be possible were it not for the fact that the foundation of the division is over the nature of the Gospel of Jesus Christ itself. But because the Gospel itself is at stake, unity is impossible. In fact, it’s not biblical. When Rome believes and teaches that salvation is by grace alone, through faith alone, in Christ alone, to the glory of God alone we will have something to discuss.
That's what Benedict is whining about...Apparently he didn't go for that one...