Maybe there was no other option.
If Germany was not allowed to continue as a nation, then its land would have to be partitioned and absorbed by other nations. But the German population was a big part of the total European population. So wouldn't that cause big minority problems in the states that absorbed the German lands? These people or their children would still be able to vote after some years and pass their politics. They would still have their language. If they retained their feelings for a nationality, they would still try to be independent and create their nation anew.
This would create a highly unstable situation in Europe for all its countries. I don't think anyone would benefit from that. A partitioned, satellite state for the powers of the time seems a better idea.