The problem with this stuff is that everything's relative, so the viewing point basically dictates what we get to see.
I agree with everything you say here Joe but have a different read on what one of your points means. When you say that "Nazi policy called for a reduction in the standards of living of German workers" I think you're speaking in terms of absolutes and in those terms you're dead right. But that 'rightness' comes with the broader economic recovery. Throughout the German economic recovery, which Hitler brought in well in advance of its global successor, the situation of German workers (and Italian workers too for that matter) far outstripped that 'enjoyed' in other industrialised nations when it came to both comparative wage levels and rate of employment. And that's in spite of the fact that, as you say, Nazi policy did call for very severe restrictions on pay rises.
It didn't last of course, but even through the war years - when the allied nations imposed very strict wage controls of their own - the comparative wage of German workers eroded more slowly than their foreign counterparts. I'm sure that was of very little comfort to them, however, as they had increasingly little on which to spend it.