Actually, the objectionable quote about Islam by a Medieval King was only an illustration for his main thesis that Christian faith is incompatible with violence and irrationality.
Because of the political complications caused by that quote, the main proposition of Benedict's lecture is unfortunately overlooked by most people. He emphasized repeatedly the following:
"Nicht vernunftgemäß handeln, ist dem Wesen Gottes zuwider."
This means: "Not to act according to reason (rationality) is adverse to the character of God."
I think this is a very important point. It is the opposite of what UBF is preaching, to neglect sound reason and listen only to what your spiritual superiors say (i.e. UBF's doctrine that "even if you don't understand the orientation of your leader, you must obey him anyway") and UBF's overall disesteem of sound reasoning and rational examination of everything.
In this, the pope has a much better theology than UBF. Overall, the Catholic doctrines and understanding of God are surely much less aberrant than the teachings of UBF and their image of God.