Let's say that there are somewhere on the order of a million sentences that can be uttered that appear to state some position between those two extremes.
Let's say that what Benedict said was one of these million statements.
Now we're arguing about whether Benedict's statement and/or the decrees of Vatican II were closer to one extreme or the other.
That's not my point. My point, a point which everyone in this thread seems to be aggressively avoiding, is asking the simple question: What do we as political conservatives do going forward? Do we focus on evangelization at the expense of distancing ourselves from potential political allies, or do we behave more conciliatory in order to win the important political battles now, and put off any theological discussions for later.
Unlike myself, I get the impression that most here are political first (and it is my understanding that this website is primarily a political website which happens to have a religion sub-forum). I would answer your question that politics is irrelevant to saving our (and others') souls which should always be our first priority. There is no conundrum here. Having said that, my experience re: religious battles on this sub-forum (as a poster or as a lurker) has shown that more times than not such "debates" are futile and really just become a sling-fest. As a result, just as Christ taught his disciples, I have chosen to shake the dust off my feet when it comes to interacting with others in certain threads.