Well, yes, the German educational system has been pretty good. However, I think it's in severe decline. On the high-school level the standards of education in math and the natural sciences has been lowered, and the discrepancy between what's called "mathematics" in high school has very little in common with what you understand as "mathematics" at the university level. The tendency in physics didactics is making me worry very much: The idea that one should make the STEM subjects more attractive to more students (which is of course a good attempt) has lead to the idea that one should cut even more mathematics from the high-school teaching of physics is, in my opinion, a clear step backward, and it won't help to attract more successful STEM students at the universities. To the contrary, already now, all German universities are strengthening their offers for students to help with mathematics, starting from introductory summary courses before the freshman semester in the natural and engineering sciences starts to regular "math help desks" to help students with struggeling with the lack of mathematical foundational skills needed to solve the problems given in their major subjects.
At the university level some years ago the "Bologna reform" was enforced on the before successful German Diploma system. The problem I see with this is not so much the scientific standards in the BSc/MS curriculum (which for physics is more or less fixed by the fundamental subjects any physicist has to learn in any case, mechanics, relativity, E&M, QM, Stat. Phys.) but the way the students are motivated to learn. Nowadays the main motivation is to pass exams and collect credit points instead of just studying for the interest and fun of the subject. When I was an undergraduate student at the unversity of Darmstadt (Dipl. Phys. in 1997), there were very few formal mandatory achievements to be collected. After 2 years we had pretty tough exams in the four subjects (math, exp. physics, theo. physics, chemistry), each 4-5 hours time, examining the entire content of the four semesters of study (and BTW we had to attend the lectures about mathematics, i.e., calculus and linear algebra together with the math majors; there was no extra math lecture for physicists!). After this "Vordiplom" you studied on towards the Diplom, which included 6 more semesters of studies with oral examanations, again in four subjects (exp.+theo. phys, math, one subject not taught at the physics department; in my case we could choose hydrodynamics from the mechanics department). In addition the Diplom included a Diploma Thesis, which took about 1 year of research to be summarized in the thesis. This system was very good when I look back, because we were forced to recapitulate all of standard physics at the end of our studies to pass the examinations. In addition the work towards the Diploma Thesis opened the door to real scientific research.
Nowadays you have very formalized credit-point systems, collecting credit points towards the BSc and then MSc, usually writing an exam or have an oral examanation in each single lecture you have to attend. Were we could choose our lectures by interest and quality, nowadays the poor students have to listen to any "mandatory" course, and there's nothing that leads to gaining insight into the "big picture", i.e., you never are forced to learn all of physics from a more general point of view, which is only possible when you have already learned the single subjects in some detail.
It's not that at the end the students know less than we did at the time, and after getting a PhD you clearly are at the same level as we were finishing our PhDs, but I think there's a lot lacking in the formalized BSc/MSc system compared to the Diploma system, where we had much more academic freedom and self-responsibility for our education. Compared to high school for me attending the university was also the feeling to "break free" from the burden to learn what's enforced on me by teachers (many of them, I was not very keen on) but to learn what I really wanted to know, choosing the way how to learn (attending lectures, talking to other students, the tutors, and professors, reading books; the internet was in its infancies) ourselves, and last but not least that was a lot of fun. I feel particularly sorry for the students about the lack of this kind of fun academic freedom can bring!