Actually the insurgents sound better armed than the Waffen SS, they had bolt action Mausers, although late in the war the recieved the MP 44 (I think) which was the first "Assault Rifle" which the AK 47 was designed from. They also had the Panzerfaust from which the RPG was also designed. So the insurgents actually have more modern arms than the SS
He may have meant the finest troops of modern history (the Germans), whereas the Iraqis are some of the sorriest fighters Americans have ever faced.