First of all the story described above is pure idolatry. It involves constructing a graven image and then bowing down before it. This is precisely what is condemned.
"Do not make idols or set up an image or a sacred stone for yourselves, and do not place a carved stone in your land to bow down before it. I am the LORD your God." Leviticus 26:1
Secondly, the Protestant "protest" against the unbiblical authority attributed to the pope invoked problems of idolatry. Consider these paragraphs from this Letter of Martin Luther to Pope Leo X. Emphases added.
Therefore, Leo, my Father, beware of listening to those sirens who make you out to be not simply a man, but partly a god, so that you can command and require whatever you will. It will not happen so, nor will you prevail. You are the servant of servants, and more than any other man, in a most pitiable and perilous position. Let not those men deceive you who pretend that you are lord of the world; who will not allow any one to be a Christian without your authority; who babble of your having power over heaven, hell, and purgatory. These men are your enemies and are seeking your soul to destroy it, as Isaiah says, “My people, they that call thee blessed are themselves deceiving thee.” They are in error who raise you above councils and the universal Church; they are in error who attribute to you alone the right of interpreting Scripture. All these men are seeking to set up their own impieties in the Church under your name, and alas! Satan has gained much through them in the time of your predecessors.
In brief, trust not in any who exalt you, but in those who humiliate you. For this is the judgment of God: “He hath cast down the mighty from their seat, and hath exalted the humble.” See how unlike Christ was to His successors, though all will have it that they are His vicars. I fear that in truth very many of them have been in too serious a sense His vicars, for a vicar represents a prince who is absent. Now if a pontiff rules while Christ is absent and does not dwell in his heart, what else is he but a vicar of Christ? And then what is that Church but a multitude without Christ? What indeed is such a vicar but antichrist and an idol?