To say that the world was stunned by what they had witnessed two days straight, whether during the opening ceremony on the first day, or the games and final exhibition the following was perhaps the understatement of a lifetime.
The world, especially those who had access to near instant communication methods went absolutely insane after hearing what Germany had pulled off. This was no longer the heralded "army with a state."
No, they had proven a refinement of culture and athletics in a way that was overwhelming. And to top this all off, it was later revealed the Habsburgs played an enormous role in the opening ceremony, and the artistic choices of the overall events.
To put it simply, Germany had emerged from the ashes of the Great War not a broken and humiliated nation but a prouder, stronger, and more refined than ever before. And its unification with Austria had seemed to play a part in this.