For what it's worth in the more progressive side of the CoC, many would consider Catholics and Orthodox as brethren, although they would disagree on a number of issues. I've been in the CoC for 26 years now and never been taught that there were no Christians except the CoC. (I was told that some CoC people believed that, but none of the churches I've attended promoted that belief.)
I'd hardly consider the CA2005 to be reaching out toward Catholicism, as Ken does, despite their quote. But I do see, among the more progressive side of the fellowship, much less hostility toward Catholics and a reaching out to embrace certain parts of Catholicism. For example, my church has Taize worship services occasionally on Sunday nights for anyone who wishes to attend. My understanding is that the Taize tradition is borrowed from Catholicism. Also, we do responsive readings and recitations (such as the Lord's Prayer -- every Sunday). Also, at ACU's Lectureship, I believe I remember seeing a class called "Embracing Your Inner Catholic"! (Interestingly, I think it was a youth ministry class.)
Now, the caveat there is that the more progressive side of the movement is equally (or more) interested in fellowship with other Protestant groups and most would still consider the CoC to be much closer to Baptists and non-denom. churches than to Catholics or Orthodox. And, most on the progressive side, while not condemning denominational structure as sinful, are not terribly interested in embracing it themselves. At least, that's my perception from my little slice of the world!
Wendy