Of course the members of the Church suffered. Who could question that? That doesn't absolve anyone for the mistakes made during that time.
There were some fairly clear connections between Catholic antisemitism and the Holocaust, Catholic authoritarianism and totalitarian governments, etc. even more obvious was the war language, with opponents called evil, the Church as different from the Others, whether protestants, jews or atheists. Attempts to bridge those differences were called "accomodations," as if the modern Samaritans were not our neighbor.
Changing those attitudes was behind the exodus from the Church, not the liturgical changes. But reversing those changes won't bring many back.
All of this is just to answer your questions about why the Church needed reform in 1960. You can disagree with me, i just want you to know why some people felt the Church had to change, be purified, reform, however you want to say it.