While I don't agree with your sentiment personally (I'm American, I have lived in many parts of the country so I see myself as American above all else), I do think that in many places -- especially the emerging parts of the world -- people identify with smaller groups that aren't bounded by the arbitrary borders the colonial powers drew up after WW2. I would also agree with you that Germany (and many other places in Europe, but Germany stands out for me just because of the local nature of beer there) have more regional identity than the US does.

A perfect example are the Kurdish people spread across Syria, Turkey and Iraq. They identify as Kurdish; and don't view themselves as citizens of Syria, Turkey or Iraq. In the emerging world, this situation is common -- basic services are provided by local tribal groups, not by the national government (which is usually dominated by another ethnic group that diverts resources to its own people). Those tribal groups may or may not be confined within a single country.

Nationalism cuts both ways -- it's useful for tearing down the walls between ethnic groups within a country, but take it too far and you get Nazis.