By standards of early 20th century it is very harsh. Even by today's standards it could be harsh if you don't have other reliable security quarantees.
Germany received a net transfer of funds in the Versailles treaty. Let me repeat this. The Versailles treaty was an economic SUBSIDY for Germany. I do not mean that Germany paid less then it's very substantial savings in military spending. I mean that Germany paid less gold then it was given gold. Germany got money (primarily from the American government). Germany also paid money (primarily to Belgium) but the amount paid was less then the amount received. The result was a net flow of money INTO the coffers of the German government which was used to subsidize the deficits that they ran every year even before the first mark in reparations was paid.
It's a classic example of autogenisis in history. Everyone knows that the Versailles treaty was a huge economic burden because that's what they hear everywhere. It's everywhere because everyone knows it. The truth of the matter, that Germany never paid, is overlooked because people are too busy discussing the alternative reality. How did the inflation that was caused by the reparations relate to Hitler? Once you are discussing that, it's hard to go back a step and point out that the reparations didn't cause inflation. It's a sick irony that in a period where countless acts of callous inhumanity happened, we forget about the actual victims in order to preserve a fantasy story in which some of the worst aggressors are actually victims.
In the defense of some of the early writers of this thesis, such as Keynes, there were legitimate economic concerns so Germany did need an advocate in the aftermath of the war. However these advocates won, completely and comprehensively. As a result Versailles contained face saving text about punishing Germany but was in truth a subsidy. It's the writers who came decades later who should be censured for creating this myth.