I agree that Panzer Lehr was definitely one of the better German units in Normandy. I would say that they probably come in second behind the 12th SS for me. One could make the case that their professionalism and expertise were unequaled in this campaign. Not to mention the division was a powerful formation that possessed some of the finest equipment available.
I also agree that many valuable German soldiers and equipment were squandered during the initial operations in Normandy because of Hitler’s obsession with holding every inch of territory. The “stand fast” or “Festung” strategy was a critical miscalculation on the part of Hitler and the German high command and cost the German ground forces valuable manpower resources.
These troops that were committed to almost suicidal missions could have been better utilized had the German commanders been permitted to disengage from the costly slugging match around Caen and reconstitute a more defensible line. This would have enabled them to take better advantage of the heavy striking power of their panzer formations. Instead the panzers were committed piece meal against the Commonwealth forces and almost surrounded and annihilated once the Americans were finally able to achieve a breakthrough.
The allied campaign in Normandy was a classic example of the Hammer and Anvil method of attack made famous by Alexander the Great at the Battle of Gaugamela. Patton’s US 3rd Army ended up playing the role of the Companion Cavalry that smashed the enemy against the Powerful Phalanx that was made up of the Commonwealth forces under Montgomery.