Martin Luther had all the symptoms of Obsessive Compulsive Disorder (OCD), which manifested itsself in the form of religious scrupulosity. He was tormented by the need to compulsively go to confession. I do believe the doctrine of ‘Justification by Faith Alone’ was his solution to his own inner demons.
I think that Luther had some good points in that he wanted to emphasize that Christ’s redemptive work was done and that there is no need to “merit” salvation. I agree with that point, as does our Church.
James Akin has a great reconciliation of the sola fide vs. sola fide plus works arguments, and he shows that we are saying the same thing at times.
Luther was mistaken with regard to Catholic doctrine, as are most Protestants today, and the only way we can change that is to abate the ignorance.