> Germany has been the biggest exporter of electricity in the world in 8 of the last 10 years.
Sure. The good old coal power plants and natgas turbines are extremely reliable and capable.
As for Germany being an exporter, Sweden and Norway both have recently declined to expand their interconnects with Germany. They don't want their local markets to be swamped by cheap low-quality power during the summer, and then squeezed during the winter when German renewables are greatly diminished.
> Not to say that there are no grounds for criticizing German policy but most of the criticism seems to be politically motivated rather than based on specific failures of the policy.
The specific failure of the policy is simple. Germany's power is DIRTY. And it's not getting any better.
> Secondly, why hydrogen?
Because there are no alternatives. Power-to-methane is going to be about 3-4 times more expensive than pure hydrogen. And again, this is not my personal preference, but the official policy of the German state.
> To be honest it's a minor issue in the grand scheme of things - keeping natural gas around to cover the last 10% of electricity
It won't be 10%, more likely 30% once Germany switches to electric heating and EVs. This switch right now is being held back by horribly high energy cost.