Vienna was the center of this entity, not a part of "Austria". Stefan Zweig, being Jewish, also wasn't connected to the native Austrian population - just like most the persons mentioned in the article. Vienna was an unaligned entity, what New York became later.
The backlash against this amalgam fueled WW1 and WW2. It's still reverberating, as can be seen in various European issues today. Bolshevism and its reaction, fascism, geared up to eradicate the old Christian/Aristocratic structures across Europe. The Habsburg emperor wasn't just leading Austria/Hungary, but also the Holy Roman Empire (of German Nation). Christian god-given authority, verbatim.