I think that there is nothing intrinsically wrong with a Catholic using a non-Catholic translation (if one is aware that some translations like the NIV have certain Protestant biases). One would have to allow that there would be certain inconveniences to doing so, like being the only one in your Bible study group having the “odd” translation, or using Catholic resources (studies and devotionals and the like) that use a translation different than yours.
Having said that, I think it is somewhat unrealistic to expect that Catholic publishers would provide Catholic versions and materials of basically Protestant resources when, compared to Protestants, there has been such a dearth of good Catholic Bible materials as it is (although it is getting better). Another thing to remember is that one of the four “marks” of the Catholic Church is that it is ONE, while protestantism, if it can be described as a single entity, thrives on constant mutation–multiplication by division, if you will. The more Bible versions the merrier, whatever one’s preference. The extreme example of this is the “King James Onlyists” who will leave a denomination over it’s use of any other version.
If we mean to bring Evangelical converts to the fullness of truth then we must offer them equal or better Bible Translations to show them that the Catholic Church takes the Scriptures seriously.
I have spoken to many converts to Catholicism and read untold numbers of conversion stories. I have never seen this cited as an obstruction to conversion. And the whole issue of “better” translations is solidly in the eyes of the beholder. Me, I like the RSV-CE.