I think the Church's current position on the SSPX is definitely a bad one, especially because the SSPX is one of the few groups left out there that try to fully adhere to the Church's teaching on moral matters. The church's whole position of shunning schismatic groups (such as the SSPX), while fully embracing heretical groups is insane.
I have heard that one of the main motivations for reconcilliation talks with the SSPX is that of money. The SSPX, especially in France, supposedly has train-loads of money which it has at its disposle.
There's a very interesting article at Una Voce's web page, which was written by a SSPX priest, and talks about this situation whole situation of reconciliation talks: Fr. Paul Aulagnier, SSPX on SSJV Reconciliation: A Victory for the Mass of Saint Pius V