""That institution is made up of individuals, who, collectively could change that institutional mindset, if each had the will to do so."

I agree with that completely.  But isn't there a natural selection process that goes on in the institution so that only those who demonstrate some measure of loyalty to the institutional mindset are advanced to the decision making level? One result of that natural selection process is the "incredible arrogance and hubris" which, as you rightly point out, "causes great harm to the body of Christ."
There are those who think that Francis is trying to change the mindset and the selection criteria.  I think it is too early to reach that conclusion.