the rest of the “civilized” world was essentially keeping Germany permanently poor, living under such misery breeds a certain…psychotic world view.

Jup. There’s a very strong argument to be made that had the terms of the treaty of Versailles not been so unfair and hostile towards Germany, World War II would have never happened.

Rehabilitation and reconstruction is ALWAYS the best option for the winning side of a large war to extend to the losing side, regardless of who/how/why the war started. Heavily penalising and fucking over the loser for years and years after the war is just going to foster resentment and discontent amongst the population, and make them feel (arguably, with a degree of validity) that conquering th countries fucking them over is the only way their country will see prosperity again.