I feel I have to clear some historical facts before answer your question. Cultural Revolution is a word refered to the period between 1966 and 1976. There are several stages during CR and in different stages the target of the movement is different. It's in fact a power struggle within CCP from the beginning to the end. Most of atrocities and damage of cultural heritage were done by the vandalizing Red Guards. Red Guards was a stick Mao used to smash the bureaucratic government. After the government was disabled, Mao feel the Red Guards were getting out of control, so he send them to the countryside to be 're-educated' by the peasants. The vandalizing basically stopped after this stage.
Red Guards is nothing like KGB. It's a loosely organized student organization with numerous hostile fractions inside. They were just normal school and college students with different background. One thing intereting about communism in China is that common people really buy into the system and ideaology. Some of the most atrocious Red Guards were actually from so called 'capitalist' or 'landowner' families, because they want to show they are more revolution than others. One of the results of CR is that most people were disillusioned of communism. The lost of traditional values is a long process. From 54 movement on, confucism along with other traditional values was criticised to be responsible for keeping China backward. CR is just the last straw on the camel's back.
Honestly, I think Confucism is a kind of value system suited to a sedentary algricultural society. Why Confucism was adopted by Korea and Japan but never adopted by nomads? The core value of Confucism is the family. Everything else is for the sake of maintaining a big family. Everybody must sacrifice for the sake of the family, on the other hand the family will take care of its members. If you don't have children, some family member will give you one. If you can't clear your debts, other family members will pay for you. If you do something outlaw, the family will also get involved. In the old society, some very powerful family can negotiate with the government and sometimes even refused to give out the criminal government wanted. The family is a shelter for the individuals in a society that have no other security available. But in modern society, the base of society has changed to individuals. The traditional values seems to be out of place in a modern society. Of course, anyone can reinterpret Confucism to suit his/her own spiritual needs. Even without CR, the traditional values will faded away gradually. Materialism is a common trend in the world not only in China.
how do you think the PRC should solve the problem of morals and values today?