Pius XII was surrounded on all sides by wolves. He was a Vatican diplomat prior to becoming Pope, and suffered repeated bouts of illness that weakened him. I'd say he just simply didn't have the constitution to fight the wolves, and probably tried to play ball with them, resulting in a lot of valid, but questionable decisions that opened doors for Vatican II.
His was not a model papacy, but a weakened, dying one, ready to be overtaken by Modernists.