If you build a society of elitist institutions, you will get elites. Not only that: if isolated, they will think of themselves as better than most, exceptional in fact. With exceptionality come the exceptions one carves out for oneself and a dismissive view of the common rabble.
Of course talented individuals should be fostered. But presenting a US-style university approach as laudable and somehow missing is irresponsible and short-sighted.
As another commenter wrote, Germany’s education system has plenty of issues but that’s not one of it.