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''Reality hurts sometimes''
Well, yes. But I do think your viewpoint is just more of an ''the glass of water is half empty'' approach than justified. We Germans are usually blamed to criticize in this manner. Kohl called it '' complaining on a high
level''.
Now let`s look at it from the ''glass is half full'' viewpoint:
Unemployment/growth rate :
Latest below 10%/2% , nothing to brag about, but still better than 11.5%/1.5%. Improving, despite real reforms have not taken place. Yesterday Merkel had to give credit to the ''Harz 4'' reform( initiated by Schröder!! Good fun!). Imagine the scope of improvements, once Merkel would/could preside a CDU/FDP government!
''Even German as a language is on the decline''
It is obvious that the USA as remaining superpower No 1 have a cultural influence worldwide. The language (well, some sort of English, as it's said /chuckle) transports this. In Germany there are plenty examples of Anglicism. Most Germans couldn't be bothered about this . Why should they, it's cool, man.. Unlike other countries in Europa who fear - somehow understandable -a cultural loss.
I believe this is also somewhat a grass root proof, that Germans don't dislike Americans as it is often claimed. It's just politics, stupid (no pun intended).
Decline economic importance:
China or even India suppose to come out in front of Germany on economic rankings. So what? Why should there be a problem, that their rankings in the future are going to reflect the position of their economy and the number of their people?
Military second rated:
In the light of the 20. century history some countries in Europe might just find this positive that Germany is downsizing it's army! Apart from this, it is in the middle of a process of transforming a land-based army, set up to fight the then SowjetUnion in Europe, to a modern response force, capable of acting worldwide. Given our history, this is politically not easy and it costs time and money. I have not the slightest doubts, this will be archived in the longer run.
Social programs:
''DDR light'', I believe you called it in another thread. I loved it!. Yes, this together with the red tape will be the hardest to change. Germany is still a wealthy country and people just don`t see the point, that things should change a lot. Especially the ones, who can take advantage of the system. Look what happened, when Merkel honestly announced changes towards a flat tax. She nearly lost the election. Obviously, we are not yet in dire streets, so it's business as usual/ sarc.
''Please tell, what profound 'systemic' changes are happening?''

IMHO the only chance of profound changes are possible with a CDU/FDP government.
''Besides making the Americans their new Jew and calling them locust capitalists, what are they doing different?''

This is stupid left wing election rhetoric. Especially when later came out, some government bodies sold out their real estate to these ''locust capitalists''.

''If Germany were attacked tomorrow successfully and hundreds died, the Germans would see this as validation to give up and abandon Afghanistan or even take a lighter position on Iran.''
I predict, the contrary will happen, Muslims here are already complaining about being hassled.

''People like Atlantic Bridge, a self proclaimed German conservative would see this as validation to disengage with the problem Islamic terror. Do you think this is a healthy perception that will lead to any solution?''

I have not read all of his or - for that matter - your postings. Also, its none of my business to judge other people here. But I can give you my opinion:
As a German, who has been living abroad many years of my professional life, my impression is, we have to engage us outside Europe too - if necessary militarily. In the long run, there is not much point in neck in the woods navel gazing. We should have a clear stand to our allies and interest to defend our similar/same values based on a Jewish/Christian cultural background. And yes, I would supported Merkel, if she were going to sent troops to Lebanon. Additionally, I had no problem either, if the mission would include, to take out this Hezbollah cr*p

The problems I mentioned are systemic and established as a trend. They are no cyclical temporary issues Germany faces, rather long term and continuing.

I am not viewing the glass half full. If I wanted to be factual and negative I would have to state that by definition Germany's economy is in a 'depression' and no credible long term projection puts Germany at more that 2% growth for the foreseeable future.

Again, look at the German birth rate. Is this changing? Is it getting better? Is it only a temporary anomaly that will pass shortly? No. It's a problem that has been brewing for years even over a decade now. Do you really think the Germans are going to have some epiphany and completely remodel their economic system? No. Truth is the Germans are going FURTHER into their hole and are now taxing road usage, phasing in a new tax for the wealthy and increasing their VAT. The only thing they can think of as an answer to their problem is to go further down this road. Why? Because the Germans embrace socialism. They believe in an 'ordentliche sozialpolitik', even though all historical examples, modern economic theory, and even common sense say it's a bad idea. When people hold on to an idea like this despite all evidence running contrary they are no longer acting pragmatic or rational. They are consumed by an ideology.

Yet more evidence-

It is no coincidence that Germany has adopted an extreme liberal position on abortion (Paragraph 218) shortly after the wall fell. The Germans who already were very liberal moved even further to the left politically after the unification. Arbeitsbeschaffungsmassnahmen or 1 Euro jobs are not to far off from what you had in the former DDR where everyone was guaranteed a job, even if it was made up and had no economic viability.

Today, Germany under Merkel will take a more sound and realistic approach to security matters. Unlike Schroeder, she will not play games to score cheap political capital at an allies expense. Iraq is not the only example of where Schroeder did this. Missile defense was another example where the Schroeder administration more or less took a position that ran contrary even to Germany's OWN security interests and they knew the US would follow through with it, yet they bad mouthed it and pandered to the political left within Germany. As the elections were nearing Schroeder even tried to play games with the Iran crisis! This man did not even serve Germany's OWN interests. He served himself, and should be happy with his job at Gazprom today.

Germany will not play a vital role in security, BUT they will no longer play games with Western collective security interests and sabotaging it as Schroeder was. On the other hand, Germany will not change in it's paradigm reference socialism; their economic, and social policy. Germany with continue to implode internally but at least externally they will not pull others down with them.

"As a German, who has been living abroad many years of my professional life, my impression is, we have to engage us outside Europe too - if necessary militarily. In the long run, there is not much point in neck in the woods navel gazing. We should have a clear stand to our allies and interest to defend our similar/same values based on a Jewish/Christian cultural background. And yes, I would supported Merkel, if she were going to sent troops to Lebanon. Additionally, I had no problem either, if the mission would include, to take out this Hezbollah cr*p"

What percent of Germans think this way? You can count them on one hand. There are also Germans who think that the current economic and social policy is a failure and that the government should back off. Most Germans will agree that there are problems, but what percent would say "yes" to cuts in the Rente, Arbeitslosenversicherung, and agree with paying for their own college or trade school and health care? Again, you can count them on one hand. The German believes in socialism, and you CAN make a 'pauschal' statement like that. There can be no change until the people begin to think differently.