What I don't understand is that as far back as 1919, Edvard Beneš suggested a "transfer" (I think that was the term he used) of the non-ethnic population of the first Republic....he mainly had Germans and Hungarians in mind....which was rejected by Masaryk (Naš taticku Masaryku), thus it seems extremely odd that he allowed his own wife and daughter to act in such a manner, especially as his wife was from a comfortable background and must have had her own furs. The late President Havel did propose some limited form of restitution and made a public apology in which he described the forced expulsion of the Sudeten Germans after the Second World War as "an act of revenge". However, this made him unpopular and the Parliament refused to act on his recommendation.
On the subject of language: to add to what Greg said, most of the later generations of Habsburgs could converse (at least to some extent) in the various languages of the empire. Crown Prince Rudolf, for example, spoke fluent Czech (source Hamann) and one notable exception with regard to Czech was Empress Elisabeth, who refused to learn the language because her hated mother-in-law (and aunt) was so fond of the Czech lands. Of course the Empress was fluent in Hungarian (and Greek) and brought up her youngest daughter Marie-Valerie to be bilingual (Hungarian and German). She insisted that Franz-Joseph should only speak Hungarian with the child, which he did to keep the Empress happy. Marie-Valerie wrote in her diary that she would have much preferred her father to speak to her in German.
From personal experience, most of the Sudeten Germans had some knowledge of Czech but obviously the degree of fluency varied.
I found an interesting documentary on You Tube the other night about the visit of the late Archduke Otto to Sarajevo in 2004 (90th. anniversary of the assassination). In the interview he was most positive about Archduke Franz Ferdinand and his plans for the empire and also mentioned that his (Archduke Otto's) father (Emperor Karl) had an excellent relationship with his uncle (Archduke Franz Ferdinand).