Yes, the Germans do live with their history day in day out. That's what usually happens to the vanquished. As a result, Germany is arguably one of the most human rights oriented, socially conscious nations in the world. Japan emerged in much the same manner. Being crushed and then being forced to acknowledge one's deeds yields a positive result.
on the other hand, the victors get an open door to keep going like that bunny on TV. I'm a staunch, flag waving American, but let's face it, America's bad history, England's bad history, France's bad history etc, get swept under the rugs leaving the appearance their histories are cleaner than those who happen to get beaten up worse.
dmitri, do you know the book "the pity of war" by Niall Ferguson? It underscores your point about the monarchy in Germany.