Imagine the world today had the Third Reich been led by competents instead of the likes of Hitler, Goerring et al. They produced some of the finest, if not occasionally strangest, looking aircraft, but like you said, requirements from high up resulted in jack of all trades, master of none. This is the same military that demonstrated the Blitzkrieg to devastating and fantastic success, but the problem was (among many, actually) they didn't see things through to the end. Leaving England undefeated in the West was a mistake considering they then opened operations against Russia in the East - the result was a two-front war that no nation on Earth at the time, save one, could manage to fight.
The thing I always think of when I consider this is Hitler's interference with the Me 262. It was intended to be a jet fighter but he insisted that it be capable of performing in a bomber role as well. That set back development and resulted in a too little, too late outcome when the 262 finally did start showing itself in the skies over Germany. What might the war have been like had there been squadrons of those birds in late '43 or so to intercept the B-17s and B-24s that were pummeling Germany? The Allies had nothing to compare at the time, and only England fielded a worthy jet fighter during the war (Gloster Meteor). P-51s were great but were no match in a dogfight with an aircraft they couldn't (a) catch or (b) out-run. (Mustangs and other prop-driven fighters could only "catch" 262s when the 262s were in landing mode and thus slowing down).
But thankfully Hitler was an idiot of a military leader and we (at least those of us here in the States) are not all speaking German right now - not that there's anything wrong with the German language (I know a little from high school and am partially of German descent) but I would not have wanted German forced on me.
Now let's see that spaghetti scheme on that 88!
Steven