You got that wrong. Germany´s chief prosecutor is still working to get Mzoudi and Motassadeq into jail. The judges have heard that there was maybe material in the US which could prove innocence of both, therefore it dropped the charges until there´s further proof of guilt. Here, we have a concrete plea for extradiction, and there´s no reason for Germany not to extradite the guy to Spain (I hope that the Spanish have sufficient evidence for a conviction). And regarding Mzoudi and Motassadeq: both will get their penalties - if not in Germany, then in a country they will be extradited to.
To be believed when seen.
I suspect that the US actually wants Mzourdi and Motassadeq out on the street and working on some al-Qaida project...while being watched. These guys simply aren't smart...and would likely lead dozens of folks into traps.