I do not believe the Pope has suggested a separate legal system be set up for Catholics.

You're kidding, right? When not suggesting that the law should reflect Catholic teaching, the Church demands that it be exempt from the law. The notion of a separate law for Catholics is precisely why the Church is in such trouble regarding child molesting priests -- all this time, they've thought it a matter to handle themselves.

I can think of some Jewish organizations that really should be on the list of terrorist organizations if they're not.