Has Martin Luther had the last laugh?

Today there is so broad a conception of the what the Catholic Church is or should be that it seems religion as an entirely private affair subject to one's own conscience has overcome the entire world. Even among those who frequent the Traditional Latin Mass there are so many divisions according to personal preferences that it would appear we have all become Protestants, the writer included. So how then can we rectify this situation and have the Catholic Church as God intended?