1 This is hilarious.  But I'm curious what you're referring to in the title of your post -- "...What Happened the Last Time" 

Do you mean that they could be inciting a new Protestant Re-Reformation?  A modern day Martin Luther posting his 95 theses on Pope Benedict "Emperor Palpatine" XVI's official Vatican blog?

You know, it's comforting to see the Church kickin' it old school.  This sounds like it could have come straight from a 70's religious-themed horror flick.  I could see this being a line the The Omen:

“Why are we bringing it back?” asked Bishop Nicholas A. DiMarzio of Brooklyn, who has embraced the move. “Because there is sin in the world.”  (insert ominous minor chords here)

2 Yep.  I'm referring to that exactly same Reformation. 

I think someone should "kidnap" the pope next and then try to put their own pope in his place, just to see how that goes down a second time around.

And you picked out my favorite part of the whole article.  I'm so glad the church is sticking to its ethical foundations in altruism and selling these to help people get to heaven and not to make money...

3 If we're going retro, don't forget to throw some defenestration in there for good measure!!

4 Well, as soon as the mayor of Prague starts irritating me with foolishness like this, I will be sure to make the suggestion.

5

All you ever wanted to know about Indulgences but were afraid to ask (via the good old Baltimore Catechism). 

Start reading at Q. 839.