The problem inherent in German armor is that toward the end they traded speed for armor and firepower. The result was a tank that could screw you up if it hit you, but that you could bracket and beat the crap out of because it couldn't get out of its own way. This is why the T-34 and our own Sherman did so well against it; the Allied R&D people understood the need for balance.
I will give credit to the Germans where its due though: first to use bona fide assault rifles in combat, I believe the first to use paratroops effectively, first jets, and of course their innovations with rocketry. It's scary to consider that had they been headed by a competent leader toward the end all that could *very* well have given WWII a few more years if not a different outcome altogether.
Regarding the air forces, the Germans initially had parity or superiority over their enemies; their pilots were veterans of the Spanish Civil War and later the Battle of Britain, trained by some of the most decorated aces of WWI and their air force was basically unchallenged until Britain. The problem they had was attrition; they simply couldn't keep up the quality training and keep churning out the weapons of war as it dragged on and their industrial base was broken.
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