Change out East Germany for Nazi Germany, or Imperial Germany, and the same ruminations have been around for a hundred years. Wilson & FDR both hated the Germans for the same reasons you cite. And, as history has shown, it was bigotry and little else.
A free press and a elections will not change everything overnight, but by giving them new incentives and new ways to resolve their grievances, I'm sure that within 20 years they'll take off, much as Taiwan and China did when they finally got leadership dedicated to making much of the country.
For the time they were in and for the actions of Germans, they were dead on. Just as we are dead on in our feelings about Muslims right now. Sure they may change, but they HAVN'T yet. You just don't give someone respect or put them on your level just because they want you to, it has to be earned. And Islam has burned all it's credit up with alot of people, and rightly so, for the time we are in and the actions of Islamic believers.