How about this: 

First, we assume a guidance by the Holy Spirit such that (despite our free will and our fallibility and indeed our powerful inclination towards getting things horribly wrong) such that the Church, understood in V2 terms as the Holy People of God, will not ULTIMATELY screw it up, get it wrong beyond corrections. 

Second, we have chosen the terrible term "infallibility" for a theology that attempts to give expression to this notion. It would undoubtedly have been better is we had expressed the underlying concept as an "ultimate infallibility" of the people of God, and then worked to the notion that it is bishops job to attempt to give expression to our current best understanding of guidance being provided by the Spirit, and it is the job of the Bishop of Rome to pursue unity of basic agreement among all bishops and among all of the people. 

Does something like that make sense to you?