> Germany being divided in South and North Germany (or eventually forming a somewhat loose federation) wouldn’t exactly have been a tragedy for the German nation.

Germany's late development was indeed a tragedy for the german nation. Compared to france, britain, russia, etc, their inability to unite and compete relegated germany to a 2nd rate nation forever and the german nation has little say in world affairs compared to britain, france and russia. There is a reason why britain, france and russia are permanent members of the security council while germany isn't.

> And it likely would’ve meant no WW1

WW1 was a result of interests outside of germany. WW1 happens regardless of where germany exists or not.