I don't think this is the big problem confronting the Catholic Church today:
Instead, it's that most Catholics don't believe basics of the Catholic Faith, and a significant majority don't even pretend to care what the Church teaches about morals and actual living. In almost any survey of religious traditions and beliefs, Catholics hover near last when it comes to fealty to their own tradition's doctrines and values.
This is likely a big reason that many orders and the clergy in general are struggling. Give up a life of worldly pleasures for a Church that acts like it believes you can get a train to Hogwarts more than it does the teachings of the Faith? I don't think so. Not to mention that 'former Catholic' feels like one of the fastest growing Christian traditions in the world. If Pope Francis looks at this and concludes the big problem is Catholics striving for righteousness and seeking to follow Church teaching, then that probably explains a lot.
Some have said that Pope Francis is the pope the modern Church deserves. I can't speak to that. But based on his priorities and the general faith walk of a majority of Catholics, I'd say he's the pope the modern Church has desperately wanted.