I definitely think that Martin Luther considered himself closer to God than catholic priests. As with most any conflict people have with one another, each party believes that they are correct, or in this case closer to God, than the other party (which would be the Catholic Church in this scenario). He blamed the Catholic church for "heresy upon heresy" in his famous document, 95 Theses of Contention. Essentially, he believed that Catholic teachings were not right and that the Christian religion should be taught differently. Thus the beginning of the Protestant Reformation.
Hope this helps!
One would assume so, especially because of his strong rejection of Catholic teachings and practices. If Luther believed that the Roman Catholic Church had lost its way from the Christian doctrine, then it's logical to assume that he considered himself to be closer to God.
A good summary of Luther's understanding of the Christian doctrine is "faith alone, grace alone, Scripture alone." Luther rejected the absenteeism, pluralism, and overall traditions of the Church. While Catholism believed that the role of the church was crucial for salvation, Luther believed in salvation through faith alone.
This was shown particularly at the time when Pope Leo X authorized the sale of indulgences to fund his building plans in Rome. A friar named Johann Tetzel was advertising indulgences as something that would bring forgiveness for all sins and a release from purgatory. As a result, people rushed to buy the indulgences, which deeply troubled Luther. This then caused him to post the Ninety-five Theses, which argued that the indulgences not only undermined the sacrament of penance, but lessened the importance in charity too.