They simply were an army air arm and not a true airforce,so they never thought or acted like one.
While in most of what you've posted in this thread I agree 100% with you, Humble, I'm in disagreement with this statement.
The Luftwaffe was a 100% independent air force. Gring wouldn't have had it any other way. Starting from that point we can debate that the
focus of the Luftwaffe as a fighting force was to cooperate with the Wehrmacht, and that it's bassic nature was that of a tactical air force.
And there I would agree with you to some extent, but again I would have to point out that while the Luftwaffe's focus was cooperating with the army, they still had serious inter-service problems (mostly started from the top of the power estaments, Gring itself) to the point that there was no good system for a german ground unit to directly calling CAS from the lufwaffe in place under later in the war, and by then it was too late to have any real application because the LW was on the defensive. And the system itself wasn't without problems anyway.
There were many instances of stukas dropping ordinance over german forces between 1939-41 and that was because there was no forward observer calling for air support at the tactical level. The CAS missions were ordered and directed from the operative level, and it was not rare for the stuka crews to arrive their intended attack position when the german forces had already overran it. The result was the avobe-mentioned cases of friendly fire.
The true Forward observer calling CAS on spot system was created by the british during 1942 and later adapted by the americans. As far as I know the germans never had such a well-working system on the field. And that not such a system was put in place even pre-war (should have, given that the accepted luftwaffe role was to support the Wehrmacht's operations) was in part because of inter-service misunderstandings and rivalry.
Summing it up, the Luftwaffe was a completely independent service branch from the Wehrmatch, at all levels; and that while I agree it's focus was to support the army, and that it did it quite succesfully, they were never in really good terms with it.
In all the rest you wrote about, I'm 100% in agreement.