WI: Catholicism dies out after Protestant reformation
Hey-I'm doing a TL in which Rome gets taken by the Ottomans. This leads to
1) The Catholic church suffers a major blow to its prestige
2) The Papacy in Europe moves to Avignon (with another Pope in Ottoman-occupied Rome), and falls under French influence, which leads to
3) The HRE sets up its own Pope in Munich. Both Popes are seen as puppets of their respective hosts, and the prestige of the church takes a further dive
4) The church is now to disorganized (with multiple Papal claimants) to conduct a successful Counter-Reformation, and its prestige is destroyed (the French Pope is seen as a puppet of the French monarchy, and ditto for the HRE Pope). Protestantism is much more successful, and by 1650, all European countries are officially Protestant, with small crypto-Catholic populations surviving in Europe and the only free practice of Catholicism taking place in the Ottoman Empire (including Italy).
What are the effects of this, particularly ideologically? Since protestantism is a much more decentralized religion, it would be much harder for governments to co-opt it like the French and Spanish did with Catholicism in OTL, so the anti-clerical backlash would be more muted. This might lead to Socialism and Communism developing differently (without the anti-religion streak of OTL). I'm also thinking that, since Protestant churches would be more democratically run, it might provide a space for the idea of democracy and a democratic culture to develop, leading to a more peaceful transition to democracy in Europe and Latin America.
What are your ideas?