What the article is missing, was a huge month-long campaign by Germany's biggest right-wingish tabloid Bild. They ensured in every way that Street View became a political issue. They told people that burglars will rob them, because they can look into their homes at any time.
Google tried to combat the campaign with full size ads in Bild explaining the falsehoods. It didn't help. Opportunistic conservative politicians immediately jumped on the issue. Google had to secede and Street View never really came.
A side note: Bilds owner is the Axel Springer SE. The new owner of Politico. Axel Springer is notoriously conservative to right-wing. They are also big buddies with Apple. Go figure.
In my option the issue with Street View was never Germany's history or public concerns. It was astroturfing by an influential media conglomerate that wanted to make up an issue for the dead season. And maybe cuddle up to their longtime partner in Cupertino.