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I must assure you that there are wasteful and overly bureaucratic processes here too, but thanks for the compliment.

The key, I think, is that one has to picture "the state" as non-static and plan accordingly. For instance, we have a court system, with the energetic and powerful Federal Court at the top, which is set up in such a way that it inherently favors human rights and freedoms above other concerns. So while the hard core of the Volksverhetzungs-laws remains un-touched, eventual feature creep is rapidly cut back by the court system.

This was designed into the German state, since there was acute awareness at the time that the laws of the Weimar Republic which could be used to curtail freedoms were instrumental in the rapid rise of the Nazi party.

It might well be that, without this process in place, free speech would slowly erode throught this law.