The Germans had a few things going for them (from a collector's standpoint):
1) They were a warrior culture, and they understood how to put on a show with their troops (which the LAH line captures well). I don't think the Allies glorified their troops to the same degree. They were citizen soldiers, thrust into battle by circumstance. The Germans were soldiers first.
2) The Germans liked to 'overbuild' things. While the Americans were content to crank our zillions of Shermans, the Germans needed the biggest, baddest thing out there, even if it did succumb to breakdowns. This led to some pretty 'manly' vehicles.
3) I think the Germans eventually realized the hopelessness of their cause, so they 'had to' create weapons that could overcome their loss of men to fight. This too led to some over-developed vehicles.
4) Perhaps the Allied 'respect' for the German troops and vehicles has been carried on through the generations. Let's face it - the Germans were some bad dudes with great weaponry. So even all these years later we still have the same 'respect' for their troops and vehicles. The assumption seems to be that the Allies won because of overwhelming resources (like the North won the Civil War on the same basis), which by nature gives more 'respect' to anything German.
Just some thoughts. I don't see people collecting German stuff because they sympathize with anything Nazi...it just looks cool.