Don't forget armies of lawyers spamming hundreds of lawsuits at each and every step no matter how small.

Can't buy a screw without every single other company that might sell screws filing lawsuits. Repeat this for every part, every service, etc. The only winners are the legal parasite class who are very powerful in Germany. This kind of problem isn't unique to Germany of course, but they exemplify it. And if you try to cut through this BS then German people get spooked; I think due to their history they prefer being bogged down in legal BS and are prone to be suspicious of any attempt to cut through red tape. I don't think this will change until the collective psyche of Germany heals.